Duty chargeable under Customs penalty provisions refers to tariff-rate duty under the charging section, not reassessed or refunded duty.

For computing penalty under Section 116 of the Customs Act, 1962, "duty chargeable" is linked to the charging provision in Section 12(1), not to duty later assessed, refunded, or reassessed under Sections 14 and 15. The distinction between chargeability and assessment is treated as material, so the tariff-rate duty forms the basis for penalty computation. Section 116 is also described as imposing strict liability on the person in charge of the conveyance and serving a deterrent purpose, not merely compensating revenue loss.

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Issues: Whether, for computing penalty under Section 116 of the Customs Act, 1962, the duty amount is to be worked out on the tariff-rate duty chargeable under Section 12(1) or on the duty amount refunded to the importer after fresh assessment.

Analysis: The duty "chargeable" for the purpose of Section 116 was held to be referable to the charging provision, namely Section 12(1) of the Customs Act, 1962, and not to the assessment or quantification of duty under Sections 14 and 15. The distinction between chargeability and assessment was treated as material, and the statutory scheme was read to require use of the tariff rate. The order further held that Section 116 imposes strict liability on the person in charge of the conveyance and that the provision is not confined to compensating revenue loss, but also serves a deterrent purpose.

Conclusion: The penalty under Section 116 is to be computed on the duty chargeable at the tariff rate under Section 12(1) of the Customs Act, 1962, not on the refunded or reassessed duty amount. The revision application failed.

Ratio Decidendi: For Section 116 of the Customs Act, 1962, "duty chargeable" means the duty leviable under the charging provision and not the duty later quantified or adjusted on assessment; the provision operates as a strict-liability deterrent.

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