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2023 (12) TMI 382 - CESTAT BANGALOREInterpretation of statute - Section 114A of the Customs Act, 1962 - whether the penalty under Section 114A of the Customs Act, 1962 be equivalent to the duty or interest or it should be duty and interest? - HELD THAT:- This issue has considered by the Hon’ble Karnataka High Court in the case of THE COMMISSIONER OF CUSTOMS AND SERVICE TAX, BANGALORE VERSUS M/S. SONY SALES CORPORATION, [2021 (3) TMI 174 - KARNATAKA HIGH COURT] where it was held that The expression used is “or” which is disjunctive between duty or interest and further use of expression as the case may be clearly suggest that aforesaid provision refers to two different persons and two different situations viz., one in which a person will be liable to duty and in other he may be liable to pay interest only and provisions that in both the situations the person liable to duty would be liable to penalty equal to duty and person liable to interest would be liable to penalty equal to interest. Therefore, in view of law laid down by Constitution Bench of Supreme Court, the word “or” cannot be interpreted as “and”.” Following the aforesaid judgment of the Hon’ble High Court, it is found that interpretation recorded by the ld. Commissioner (Appeals) in computing the penalty under Section 114A of the Customs Act, 1962 is unsustainable in law - the impugned order set aside - appeal allowed.
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