Whether penalty is to be imposed when the appellant has accepted the classification and paid the entire duty along with penalty much before the issuance of the show cause notice?

Importer Wins Appeal Against Penalty; Court Finds No Intentional Misclassification Under Customs Act Section 114A.

The appellant, an importer, challenged a penalty imposed for alleged suppression of facts after misclassifying imported goods under the wrong Customs Tariff Heading. They accepted the correct classification, paid the differential duty with interest before the show cause notice, and argued for a penalty waiver due to no intent to evade duty. The court acknowledged the appellant's prompt rectification and found no suppression of facts, as the misclassification was not deliberate. Consequently, the penalty under Section 114A of the Customs Act 1962 was set aside, and the appeal was allowed.