Customs penalty under Section 112 requires a proved Section 111 contravention; mere absence of bill of entry was insufficient.

Penalty under Section 112 of the Customs Act cannot be sustained unless a contravention attracting Section 111 is first established. On the facts noted, no bill of entry had been filed, but there was also no established misdeclaration or other proved contravention, so the statutory basis for penalty was absent. The penalty was therefore set aside, while the question of importer status was left undecided.

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Issues: Whether penalty under Section 112 of the Customs Act was sustainable in the absence of a bill of entry or any established misdeclaration or contravention attracting Section 111 of the Customs Act.

Analysis: The liability to penalty was examined independently of the question whether the appellant was the importer of the goods. The finding was that there was no attempt to misdeclare the goods, as no bill of entry had been filed. In the absence of an established contravention of Section 111, the prerequisite for penalty under Section 112 was not made out.

Conclusion: The penalty was unsustainable and was set aside.

Final Conclusion: The appeal succeeded to the extent of deletion of penalty, while the question of importer status was left without a finding.

Ratio Decidendi: Penalty under Section 112 of the Customs Act cannot be imposed unless a contravention attracting Section 111 is established, and the mere absence of a bill of entry, without misdeclaration, is insufficient.

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