Penalty under s.114A Customs Act was denied because the allegations of collusion, wilful misstatement, or suppression were not sustainable on the record or even properly justified in the SCN; the importer's inability to meet export obligation arose from lack of export orders, and duty plus interest were voluntarily paid prior to SCN with subsequent regularisation by DGFT. Consequently, the SCN was deemed to be under s.28(1) by operation of s.28(10B), and once duty and interest stood paid, s.28(2) barred issuance/continuance of SCN and, in any event, penalty was not imposable. The equal penalty was set aside and the appeal allowed. - CESTAT
Penalty under s.114A Customs Act was denied because the allegations of collusion, wilful misstatement, or suppression were not sustainable on the record or even properly justified in the SCN; the importer's inability to meet export obligation arose from lack of export orders, and duty plus interest were voluntarily paid prior to SCN with subsequent regularisation by DGFT. Consequently, the SCN was deemed to be under s.28(1) by operation of s.28(10B), and once duty and interest stood paid, s.28(2) barred issuance/continuance of SCN and, in any event, penalty was not imposable. The equal penalty was set aside and the appeal allowed. - CESTAT
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