No deliberate misdeclaration means no customs penalty where packing error explained the goods mismatch.

Penalty under Section 112A of the Customs Act, 1962 could not be sustained where the Bill of Entry was filed on the basis of the packing list and Bill of Lading, and the goods mismatch was credibly explained as a packing mistake by the exporter. The explanation was accepted as genuine and not shown to be false, and no deliberate misdeclaration by the importer was established. On these facts, the tribunal held that the statutory conditions for penalty were not met and set the penalty aside in favour of the assessee.

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Issues: Whether penalty under Section 112A of the Customs Act, 1962 was sustainable in the absence of deliberate misdeclaration by the importer.

Analysis: The Bill of Entry was filed on the basis of the packing list and Bill of Lading. The mismatch in the imported goods was explained as a packing mistake committed by the exporter, and that explanation was accepted as cogent and not shown to be false. The importer had also suffered financial loss by having already paid for the consignment. On these facts, no deliberate misdeclaration on the part of the importer was established.

Conclusion: The penalty under Section 112A of the Customs Act, 1962 was not sustainable and was set aside in favour of the assessee.

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