2025 (8) TMI 266

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....Adjudicating Authority wherein he has confirmed the duty demand and penalty under Section 112(a) of the Customs Act, 1962 on the appellant but has not imposed penalty under Section 114A ibid. It is their case that the Adjudicating Authority has failed to impose penalty under Section 114A even though the Importer-Respondent is held liable to pay duty, which is determined under Section 28 ibid; that penalty under Section 114A is mandatorily leviable in addition to penalty under Section 112(a) ibid. In this regard, the Revenue has placed reliance on decision of Supreme Court in the case of UOI vs Rajasthan Spinning and Weaving Mills 2009(238) ELT 3 SC. 3. We find that despite the Service of hearing notices, the Respondent - Assessee has not a....

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....se may be, as determined under sub- section (8) of section 28, and the interest payable thereon under section 28AA, 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 twenty-five per cent of the duty or interest, as the case may be, so determined : Provided further that the benefit of reduced penalty under the first proviso shall be available subject to the condition that the amount of penalty so determined has also been paid within the period of thirty days referred to in that proviso : Provided also that where the duty or interest determined to be payable is reduced or increased by the....

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.... ( emphasis added ) 6.1 Thus it is seen that Section 114A ibid deals with non- levy or short levy of customs duty arising on account of the reason of collusion or any willful mis-statement or suppression of facts. From the language of the said Section, it is seen that the penalty leviable under the said provision is a statutory penalty. The phrase used is "shall also be liable to pay a penalty equal to the duty or interest so determined". The moment it is found that a person who by reason of collusion or any wilful mis-statement or suppression of facts is liable to pay the duty or interest as determined under sub-section (8) of section 28, he shall also be liable to pay a penalty. The penalty is automatic, and deterrence is the main the....