Penalty under Section 112(a)

[Muthukumar Muthunarasimhan]

Dear Experts,

Penalty imposed equilant to duty under Customs Act is right under section 112(a) when the assessee himself paid the duty and interest before adjudicate the matter after issue of Show cause Notice?

AI Summary

Debate on Penalty Under Section 112(a) of Customs Act: No Penalty if Duty Paid Pre-Adjudication Per Section 28(2). A discussion on a forum revolves around whether a penalty under Section 112(a) of the Customs Act is justified when the duty and interest were paid before adjudication following a Show Cause Notice (SCN). An expert highlights that under Section 28(2) of the Customs Act, if the duty and interest are paid and the proper officer is informed, no penalty should be imposed. The issue arose from a possible communication gap, but it was clarified that the importer had informed the authorities timely, and thus, no penalty should be levied. The matter was to be adjudicated by the competent authority.