2024 (8) TMI 267

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....2015 issued from F. No. KASEZ/20/2014-15/IA-I dated 16.03.2015 by Joint Development Commissioner, KASEZ, Gandhidham, for "Warehousing Service Activity and Trading Service Activity" in respect of following items as below:- Sr. No. Items HS Code 1 All kinds of textile, fabric 53110011 2 All kinds of knit and hosiery 61151000 3 All kinds of readymade garments 61151000 4 All kinds of accessories of garments 61119090 5 All kinds of home furnishing 51081250 6 All kinds of textile and fabric yarn 53110011 7 All kinds of blankets and rolls 63012000 8 All kinds of textile and dyes and chemicals 63012000 1.1 The appellant filed bill of entry No. 0015820 dated 12.10.2014 at KASEZ, Gandhidham and sought clearance of the foll....

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.... 270 Nil 7. Jackets 62043300 1178 Nil 8. Skirts 61045300 1540 Nil 9. Ladies Gowns 61083100 362 Nil 10. Woolen Tops 61069020 240 Nil 11. "Sound Craft" branded "Mixing Consoles" 85437022 95 Nil From the above, it appeared that the appellant have grossly mis-declared the quantity as well as the value of the goods. Therefore, the appellant were issued a show cause notice as to why the goods valued at Rs. 2,21,21,536/- seized under panchnama dated 20.10.2015 should not be confiscated under Section 111(f),111(i),111(l) and 111(m) of the Customs Act, 1965; Customs duty Rs. 82,00,034/- should not be demand under Section 28 (4) of the Customs Act 1962 and penalty should not be imposed under Section 112(a) and/or 114(A) of....

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....s Pvt. Ltd., KASEZ, Gandhidham under Section 112(a) of the Customs Act, 1962. (vi) I impose a penalty of Rs. 2,00,000/- on Shri Kamal Makkar, Director of M/s Lily Apparels Pvt. Ltd., KASEZ, Gandhidham under Section 114AA of the Customs Act, 1962." 2. Shri Sudhanshu Bissa, Learned Counsel appearing on behalf of the appellant at the outset submits that the appellant seeks limited relief that the option of 25% penalty was not given by the Adjudicating Authority in the order-in-original which as per statutes he was supposed to give the option of 25% penalty. He further submits that as regard the penalty imposed under Section 112(a) since the penalty under Section 114A Customs Act, 1962 was imposed. The penalty under Section 112(a) cannot be ....

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....rect, on the ground that the penalty under Section 114A has been imposed. We feel it necessary to go through the Section 114A Customs Act, 1962 carefully, which reads as under :- SECTION 114A. Penalty for short-levy or non-levy of duty in certain cases. - Where the duty has not been levied or has been short-levied or the interest has not been charged or paid or has been part 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 1[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 su....

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.... 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 also apply to cases in which the order determining the duty or interest under 1[sub-section (8) of section 28] relates to notices issued prior to the date on which the Finance Act, 2000 receives the assent of the President; (ii) any amount paid to the credit of the Central Government prior to the date of communication of the order referred to in the first proviso or the fourth proviso shall be adjusted....