2026-VIL-323-CESTAT-DEL-CU
  1. Home
  2. 2026-VIL-323-CESTAT-DEL-CU

CUSTOMS CESTAT Cases

Customs - Relevance and admissibility of statements recorded under Section 108 of the Customs Act and Section 14 of the Central Excise Act, 1944 – Appellant-CHA was imposed penalties under Sections 112(a)(i) and 112(a)(ii) of the Customs Act based on his statements and the statements of third party recorded under Section 108 of the Customs Act. The appellant challenged the penalties on the ground that the statements cannot be relied upon as the procedure under Section 138B of the Customs Act was not followed - Whether the penalties imposed on the appellant solely on the basis of the statements recorded under Section 108 of the Customs Act can be sustained – HELD - The statements recorded under Section 108 of the Customs Act cannot be considered as relevant evidence unless the procedure prescribed under Section 138B of the Customs Act is followed. Section 138B(1)(b) requires that the person who made the statement must be examined as a witness before the adjudicating authority, and the authority must form an opinion that the statement should be admitted in evidence in the interests of justice. This procedure was not followed in the present case - The provisions of Section 138B(1)(b) of the Customs Act and Section 9D(1)(b) of the Central Excise Act are mandatory provisions. The rationale behind this elaborate procedure is to ensure that statements recorded during investigation are not obtained under coercion or compulsion and to provide the opportunity of cross-examination to the person against whom the statement is used. Since the mandatory procedure was not followed in the present case, the penalties imposed solely on the basis of the statements recorded under Section 108 of the Customs Act cannot be sustained and set aside – The impugned order is set aside and the appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

Analysis of Union Budget 2026-27:
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?