Penalty based on statement recorded u/s. 108 without complying with section 138B cannot be sustained

Central Board of Indirect Taxes And Customs Vs Subair Kallungal (Kerala High Court) Kerala High Court held that levy of penalty on the basis of statement recorded under section 108 of the Customs Act is not sustainable since provisions of section 138B have not been complied with. Accordingly, the appeals are allowed. Facts- Post personal search and on the basis of the statements recorded under Section 108 of the Act, common show cause notices were issued to various persons, including the respondents herein proposing confiscation of gold and proposing penalty. Notably, Tribunal allowed the app...