Section 114A penalty applies only to the duty-liable person, not merely the import licence holder.

Penalty under Section 114A of the Customs Act was confined to the person liable to pay duty under Section 28(2), as the provision was read on its plain language. In the context of denial of exemption under Notification No. 203/92-Cus., the licence holder was held outside that class because it was not the duty-liable person. Accordingly, the penalty could not be imposed on the import licence holder and was liable to be set aside.

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Issues: Whether penalty under Section 114A of the Customs Act, 1962 could be imposed on the holder of the import licence, or only on the person liable to pay duty on imported goods under Section 28(2) of the Customs Act, 1962.

Analysis: The dispute arose from denial of exemption under Notification No. 203/92-Cus. and the consequential penalty imposed on the licence holder. The provision was construed on its plain language, which linked penal liability under Section 114A to the person who is liable to pay duty under Section 28(2). The appellant, being only the licence holder, did not fall within the class of persons on whom such penalty could be imposed.

Conclusion: Penalty under Section 114A was not imposable on the appellant licence holder and was therefore liable to be set aside.

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