Mere Procedural Lapse Not Penal Offence in Excess Customs Duty Drawback Claim: CESTAT Quashes Penalty u/s 114 & 114AA [Read Order]

The CESTAT ruled that procedural lapses in drawback claims do not amount to offences warranting penalty under Sections 114 and 114AA of the Customs Act. Finding no evidence of deliberate fraud or suppression, the Tribunal held that penalties require mens rea and cannot be imposed for technical or clerical mistakes. It quashed the penalties while allowing for appropriate civil recovery if any excess benefit was availed. The decision reinforces that penal provisions must be applied only where intentional wrongdoing or fraudulent intent is proved.