CESTAT says Customs Penalty Requires Positive Corroborative Evidence

Chessman Impex was alleged to have diverted duty-free DEEC imports and exported maize instead of the stipulated steel products. CESTAT found that contemporaneous Customs, Central Excise and DGFT records, export realisation and the accepted CBI closure report supported the actual exports, while Revenue had no independent evidence establishing diversion or substitution. The demand and penalties were therefore set aside.