2024 (8) TMI 267

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....ter of Approval No. 20/2014-15 dated 12.03.2015 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 fil....

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.... 14560 2. Leggings 61046990 3705 8750 3. T-Shirts 61099090 400 2870 4. Ladies Tops 61099090 50440 Nil 5. Padded Bras 62121000 34800 Nil 6. Sweaters 61101120 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....

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....ty of Rs 64,62,635/- plus an amount equivalent to interest payable on confirmed duty, supra, upon M/s Lily Apparels Pvt Ltd., Unit-II, Plot No.409, Sector-III, KASEZ, Gandhidham under Section 114A of the Customs Act, 1962. (v) I impose a penalty of Rs. 5,00,000/- on Shri Kamal Makkar, Director of M/s Lily Apparels 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% pena....

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....9;s penalty shall stand reduced to 25% under Section 114A subject to condition that the appellant pay total duty confirmed, interest thereon as per law and 25% penalty under Section 114A within a one month form the date of this order. 4.1 As regard submission of the Learned Counsel that penalty under Section 112(a) is not legal and correct, 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 int....

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....s), 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 2[28AA], 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 also apply to cases in w....