TaxTMI 
TaxTMI 
2007 (11) TMI 27
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....nue and enhanced the amount of penalty under Section 114A of the Customs Act, 1962 (for short 'the Act') from Rs. 50,000/- as imposed by the Commissioner of Customs, Goa to Rs. 10,00,000/- and the redemption fine under Section 125 of the Act from Rs. 2,50,000/- to Rs. 10,00,000/-. 2.The assessee-appellants herein had imported Integrated Circuits (ICs) from a firm in Hong Kong by declaring the value of the consignment at HK $ 40,492.49. Directorate of Revenue Intelligence (DRI) authorities at Goa examined the consignment and upon examination thereof, found certain stickers and labels indicative of the particulars of the manufacture and transport of the goods by air etc. inside the cartons in which ICs were packed. After investigation, the....
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....assessee has come up in appeal before us. 6.Shri L.P. Asthana, learned counsel appearing for the appellants did not either dispute, the value of the goods which was fixed by the authorities at Rs. 23.4 Lac or the amount of differential duty. He has not disputed the culpability of the appellants as well. The only point raised by him is regarding the enhancement of the amount of penalty as well as the redemption fine. 7.In this context it would be appropriate to refer to the relevant sections, viz., Section 114A and Section 125 of the Act which read as under : "114A. Penalty for short-levy or non-levy of duty in certain cases. - Where the duty has not been levied or has not been short-levied or the interest has not been charged....
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....ased by the Commissioner (Appeals)., the Appellate Tribunal or, as the case may be, the court, then, the benefit of reduced penalty under the first proviso shall be available if the amount of the duty or the interest so increased, along with the interest payable thereon under section 28AB, and twenty-five per cent of the consequential increase in penalty have also been paid within thirty days of the communication of the order by which such increase in the duty or interest takes effect : Provided also that where any penalty has been levied under this section, no penalty shall be levied under section 112 or section 114. Explanation. - For the removal of doubts, it is hereby declared that - (i) the provisions of this section shall als....
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....s." 8.According to the learned counsel for the appellants, the maximum penalty which could be imposed under Section 114A of the Act can be equal to the duty demanded which, in the present case, was Rs. 4,91,000/- whereas the Tribunal has enhanced it to Rs. 10,00,000/-. It is further submitted by him that under Section 125 of the Act the Commissioner could impose the fine in lieu of confiscation as he deemed fit but it could not exceed the market price of the goods confiscated, less in the case of imported goods the duty chargeable thereon. According to him, the fine under the said Section has been increased to Rs. 10,00,000/- without ascertaining the market value of the goods confiscated. 9.After hearing learned counsel for the partie....