2014 (12) TMI 690

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....ent it has imported some machineries. Under the said circumstances, the respondent is liable to pay duty to the tune of Rs. 9,46,205/-. Since the respondent has not paid the differential amount to the tune of Rs. 9,46,205/-, a penalty of 25% has been imposed by the department under Section 114A of the Customs Act, 1962 and the same has been confirmed in order-in-original passed by the Commissioner of Customs, Tuticorin on 30-9-2003 and against such order the respondent has preferred Appeal No. C/384/2003 before the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai. The Appellate Tribunal has passed its Final Order No. 352/2010, wherein it has reduced penalty to the tune of Rs. 30,000/- and against such order the....

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....the interest has not been charged or paid or the duty or interest has been erroneously refunded by reason of collusion or any wilful mis-statement or suppression of facts, the person who is liable to pay the duty or interest, as the case may be, as determined under sub-section (8) of section 28 shall also be liable to pay a penalty equal to the duty or interest so determined : Provided that where such duty or interest, as the case may be, as determined under sub-section (8) of section 28, and the interest payable thereon under section 28AB is paid within thirty days from the date of the communication of the order of the proper officer determining such duty, the amount of penalty liable to be paid by such person under this section shall be ....

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....late Tribunal is empowered to reduce penalty prescribed under Section 114A of the Customs Act, 1962? 10. The learned counsel appearing for the appellant has drawn the attention of the Court to the decision in Union of India v. Dharamendra Textile Processors reported in 2008 (231) E.L.T. 3 (S.C.), wherein the Hon'ble Apex Court has had an occasion to deal with similar question and ultimately found that imposition of penalty is mandatory and question of reduction does not arise. 11. In the order passed by the Appellate Tribunal, it has been stated that since the respondent herein has given undertaking to make good interest on the duty, the Appellate Tribunal has reduced penalty to the tune of Rs. 30,000/-. 12. As per the dic....