By TIOL News Service

MUMBAI, DEC 13, 2017: THIS is a Revenue appeal against the order passed by the Commissioner of Customs (Import), NhavaSheva.

None was present for respondent when the appeal was heard.

The only short point raised by Revenue is that when levy of duty is not in question by the respondent importer the law laid down in Section 114A of the Customs Act, 1962 shall apply.

Inasmuch as, as per the mandate of that section, penalty equal to the amount of duty shall be leviable.

And since the adjudicating authority had imposed a penalty of Rs.50 lakhs under that section, the same is contrary to the statutory provision. It is the claim of the Revenue that penalty equal to the duty of Rs.4,03,46,583/- should have been imposed.

The Bench observed that the proposition of Revenue is correct when the statutory provisions of Section114A of the Customs Act, 1962 is read.

The Revenue appeal was, therefore, allowed.

Nonetheless, the Bench wanted the CBEC to take note of the following and do the needful –

"5. …we would like to inform Member (Customs) of the Board to circulate the copy of this order to ensure that law is applied in its letter and spirit without any will and pleasure of the authorities below. That should be imposed in accordance with the mandate of the statute."

(See 2017-TIOL-4382-CESTAT-MUM)