Customs Authorities cannot Levy Redemption Fine Beyond Market Value of Seized Goods u/s 125 less Duty Payable: CESTAT

The CESTAT has ruled that "Customs authorities cannot levy a redemption fine beyond the market value of seized goods" under the "less duty payable" rule. This decision provides a crucial victory for the taxpayer, acknowledging that not all cash deposits during the demonetization period were from unexplained sources. The ruling, a significant victory for the company, reinforces the principle of legal certainty and predictability in tax matters. The court's decision is a crucial reminder to all that they must be diligent in their dealings.