2016 (10) TMI 641

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....ning, two iron presses were recovered from his bag which were opened with the help of a screw driver and were found to have concealed three gold bars glued to the base of the press with adhesive tape. A Vaseline jar found from the said baggage was also opened and 4 gold bars were found to have been dipped in the Vaseline jelly. The total of seven gold bars so recovered were got appraised from an authorized appraiser and was found to be of total value of Rs. 20,60,100/- As the appellant could not produce any documents to show the legal possession of the same and in as much as the disembarkation slip was left blank by the assessee in respect of the total value of the dutiable goods being imported, a view was undertaken that the appellant inte....

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....ction 114AA. Reliance stands placed upon the Tribunal order in the case of Zainuddin Vs. CCE Hyderabad-2015 (330) ELT 697 (Tri-Bang.). 5.  The Ld. DR appearing for the Revenue opposes the prayer for reduction in penalty or for setting aside the penalty imposed under section 114AA on the ground that the fact that the gold was brought by concealing the same is reflected on the appellants malafides to smuggle the same into India without payment of duty, thus calling for harsh penalty. 6.  It is an admitted fact that the gold was brought to be smuggled into India by concealing the same in an effective manner and the appellant also crossed the green channel without declaring the same. Not only that, the embarkation slip filed by ....

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....llow the redemption on payment of fine under the facts and circumstances of this case, we consider that penalties imposed under section 112(a) and 114AA is harsh. Section 112 provides for penalty when a person renders goods liable to confiscation under section 111 of the Customs Act, 1962. Section 114AA provides for penalty when there is a short levy having taken place. Because of the seizure of the gold and confiscation thereafter, it cannot be said short levy has taken place. Having regard to the fact of absolute confiscation and in case of absolute confiscation, there cannot be short levy, we consider the penalty under Section 114AA need not be confirmed. As regards the penalty under section 112(a) of the Customs Act, 1962, we consider t....