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2016 (9) TMI 521 - CESTAT MUMBAIImposition of penalty - Section114A of the Customs Act, 1962 - penalty imposable equal to duty short paid or dutynot paid is ₹ 68,22,953/- - penalty imposed ₹ 25,00,000/- - 100% EOU - imported raw material and capital goods - exemption Notification No. 13/81-Cus. Dt. 09.02.1981 - Held that: - under Section 114A the penalty should be mandatorily equal to the duty short paid or non-paid. On this issue the Hon ble Supreme Court in the case of Rajasthan Spinning & Weaving Mills [2009 (5) TMI 15 - SUPREME COURT OF INDIA] and Dharmendra Textile Processors [2008 (9) TMI 52 - SUPREME COURT], held that the mandatory penalty provided under Section 11AC which is pari materia to Section 114A cannot be reduced from equal amount of duty short paid or non-paid - reduced penalty wrongly imposed - the appellant liable to pay the penalty under Section 114A equal to the duty confirmed in the adjudication order - reduced penalty not justified. Demand of interest - Section 28AB of the Customs Act, 1962 - interest demand not confirmed - Held that: - it appears that there is an apparent error on the part of the adjudicating authority that despite clearly holding that the interest is recoverable on duty payable under the provisions of Section 28AB of Customs Act 1962 in Para 15 of the impugned order, it was left from mentioning in the operating portion of the order - demand of interest upheld. Appeal allowed - decided in favor of Revenue.
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