Company penalized Rs.14,97,179 under Section 114A for mis-declaring assessable value causing duty short-payment

CESTAT Bangalore upheld penalty under Section 114A of Customs Act, 1962 equivalent to duty short-paid of Rs.14,97,179 against appellant company for mis-declaration of assessable value resulting in short-payment. Personal penalties under Section 112(b) on other appellants were confirmed but reduced - Managing Director's penalty reduced to Rs.2,00,000 and Marketing Director's penalty reduced to Rs.1,00,000 considering gravity of offence and case circumstances. Company's appeal dismissed; other appellants' appeals partially allowed.

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Issues Involved:
- Imposition of penalty on the appellant under Section 114A of the Customs Act, 1962
- Imposition of personal penalties on other appellants under Section 112(b) of the Customs Act, 1962

Summary:
The case involved the import of wood working machines with allegations of under-invoicing and transfer of excess amounts to overseas suppliers through non-banking channels. The appellant did not challenge the payment of differential duty but contested the imposition of penalties. The Revenue argued that penalties were justified due to deliberate misdeclaration and fraudulent actions. The main issue was whether penalties were rightly imposed on the appellant and other appellants. The Commissioner confirmed the allegations, stating that the appellant suppressed the correct value of imported goods, leading to underpayment of duty. The penalties were upheld based on the findings of deliberate fraud and intention to evade duty. The penalties on other appellants were also upheld, with adjustments made based on the gravity of the offense. The appeal by the appellant-company was dismissed, while the appeals of other appellants were partially allowed with reduced penalties to meet the ends of justice.

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