Customs Penalty u/s 112(b) unsustainable as appellant not dealt physically with alleged goods

Lalit Jain Vs C.C. (CESTAT Ahmedabad) Held that penalty under Section 112(b) of the Customs Act cannot be imposed if the assessee has not dealt with or transported goods physically in any manner. Facts- Based on the investigation and evidences in the form of statements of persons involved in smuggling of gold from Dubai to India, it was alleged that the appellant along with others was actively financing the smuggling racket. Accordingly, penalty u/s. 112(b)(i) of Rs. 50,00,000/- was imposed on the appellant. Being aggrieved, the appellant has preferred the present appeal. Conclusion- In the ca...