Penalty cap under Customs provisional duty assessment regulations cannot be exceeded; maximum limit controls the authority's power.

Regulation 5 of the Customs (Provisional Duty Assessment) Regulations, 2011 was construed as prescribing only the outer limit for penalty. The phrase "which may extend to" was read as fixing the maximum penalty imposable, while leaving the minimum penalty to the authority's discretion. On that construction, enhancement of penalty beyond the permissible limit was held unsustainable, and the adjudicating authority's order was restored.

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Issues: Whether Regulation 5 of the Customs (Provisional Duty Assessment) Regulations, 2011 permits enhancement of penalty beyond the maximum limit prescribed therein.

Analysis: Regulation 5 was construed as fixing only the upper limit of penalty. The expression "which may extend to" was read as relating to the maximum penalty imposable, while leaving the minimum penalty to the discretion of the authority.

Conclusion: The enhancement of penalty beyond the permissible limit was not sustainable and the order of the Adjudicating Authority was restored.

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