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Issues:
Penalty imposed under Section 112(b) of the Customs Act, 1962 for abetting the sale of a car liable for confiscation. Analysis: The case involved an appeal against an Order-in-Appeal that upheld a penalty imposed on the appellant but reduced the amount. The appellant, a broker, was involved in the sale of a Toyota Lexus car, unaware that it was illegally imported. The Directorate of Revenue Intelligence investigated the case and issued a show cause notice to the appellant under Section 112(b) of the Customs Act, 1962. The adjudicating authority and the Commissioner (Appeals) upheld the penalty, leading to the appellant's appeal. The appellant argued that he had no knowledge of the car's illegal importation and had taken due care by verifying documents before entering into the sale transaction. On the other hand, the Departmental Representative contended that the appellant's involvement with a car liable for confiscation warranted the penalty, given his awareness of dealing with an imported car. The Tribunal considered both sides' submissions and noted that the appellant, a car dealer/broker, had taken precautions by verifying the RTO registration and obtaining Customs clearance documents. The Tribunal highlighted Section 112(b) of the Customs Act, which allows penalties for dealing with goods known or believed to be liable for confiscation. However, since there was no evidence to prove the appellant's knowledge of the car's illegal importation, the penalty under Section 112(b) was deemed unjustified. Consequently, the Tribunal set aside the impugned order concerning the appellant, ruling in favor of the appellant and allowing the appeal.
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