Penalty on Co-Noticee u/s 112(a) of Customs Act Set Aside by CESTAT: Mere Classification Dispute Not Grounds for Confiscation [Read Order]

CESTAT set aside penalty and confiscation proceedings against a co-noticee under Section 112(a) of the Customs Act, holding that a mere classification dispute cannot justify penal action. The bench observed that classification differences are interpretative in nature and absent mis-declaration or fraud, no offence is made out. It examined import records and found no evidence of suppression or deceit. The order underscores that bona fide classification disputes must be resolved through adjudication, not punishment, and reinforces the necessity of intent for confiscation proceedings.