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2023 (12) TMI 193 - AT - CustomsQuantum of penalty u/s 114 of CA - penalty imposed is around ten times the value of the impugned goods - misdeclaration of export goods - appellant in collusion with his DTA supplier (appellant-2) attempted to export the impugned goods which were liable for confiscation. It is contention of revenue that Commissioner (Appeals) has decided the appeal in favour of respondents without discussing departmental views on merits. HELD THAT:- The Commissioner (Appeals) has discussed the relevant portion of show cause notice and has concluded for deduction of the penalties imposed upon the respondents. He has discussed in his order that why he do not find respondents guilty of mis-declaration etc. and imposition of penalties under Section 114 and specifically under Section 114AA is a discretionary power whereby penalty could have been imposed up to the value as declared or to the value as determined under the Customs Act. It is not the case that penalties imposed under the provisions is a mandatory penalty that needs to be reduced. Commissioner (Appeals) in exercise of discretion have reduced the penalties imposed as indicated in his order. Nothing has been stated in the appeal to show that the discretion as exercised was in a malafide manner. In case of COMMISSIONER OF CUSTOMS (IMPORTS), MUMBAI VERSUS RA SPINNING MILLS (P) LTD. [2004 (4) TMI 405 - CESTAT, MUMBAI] Mumbai bench held Section 112 of the Customs Act does not provide for a mandatory penalty and the discretion to impose penalty or not to impose penalty depends upon each case. In COMMISSIONER OF CENTRAL EXCISE, CUS. & S.T. VERSUS BARNWAL CARPET MFG. CO. [2017 (11) TMI 1046 - ALLAHABAD HIGH COURT] Hon’ble Allahabad High Court has held When the adjudicating authority is empowered to impose lesser penalty than the maximum provided it cannot be said that the Tribunal is not vested with the same power. The Tribunal having exercised the above discretion for the reasons recorded which do not appear to be arbitrary or whimsical, in any way, we are of the view that the said discretion is not liable to be interfered with and the Tribunal was justified in reducing the penalty imposed under Section 114(iii) of ‘the Act’. There are no merits in the appeal - appeal dismissed.
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