Penalty under Section 112 cannot survive once goods are held not liable to confiscation; omission to address the point warranted recall.

Penalty under Section 112 of the Customs Act cannot survive where the goods are found not liable to confiscation under Section 111, because the statutory basis for penalty disappears once confiscability is negated. The earlier order had accepted that the imported goods were not liable to confiscation, yet it failed to deal with the consequence for penalty despite the contention being raised. That omission was treated as an error apparent on the face of the record, justifying recall. The recall application was allowed and the penalty order was set aside insofar as it concerned the applicant.

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Issues: Whether the earlier appellate order required recall for failure to consider the applicability of penalty under Section 112 of the Customs Act when the goods had been held not liable to confiscation.

Analysis: The application pointed out that the earlier order had accepted that the goods imported by the concerned importer could not be confiscated, yet no finding had been recorded on the consequence of that conclusion for penalty under Section 112. Penalty under that provision depends upon an act or omission rendering the goods liable to confiscation under Section 111. Once the goods were held not liable to confiscation, the foundation for penalty under Section 112 disappeared. Since this contention had been raised but not dealt with, the omission constituted an error apparent on the face of the record warranting recall.

Conclusion: The recall application was allowed and the penalty order was set aside insofar as it related to the applicant.

Ratio Decidendi: Penalty under Section 112 of the Customs Act cannot survive where the goods are held not liable to confiscation under Section 111 of the Customs Act, and failure to consider such a material contention amounts to an error apparent on the face of the record.

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