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2018 (5) TMI 1149 - AT - CustomsPenalty u/s 114A and 114AA of CA, 1962 - Valuation of imported goods - enhancement of value on the basis of contemporaneous import - Held that: - No evidence was found that the appellants have suppressed the value and additional consideration was paid by some other means. Since the assessment was finalized in the Bills of Entry itself and duty was paid on the enhanced value, therefore, there was no reason to issue the show-cause notice. The show-cause notice was issued only for imposition of penalty under Section 114A. It is observed that the demand was neither raised nor confirmed under Section 28(1) of the Customs Act, 1962. Therefore, in absence of any determination of duty under Section 28(1), penalty under Section 114A cannot be imposed. Therefore, I set aside the penalty imposed under Section 114A. From the reading of Section 114AA, it is observed that if the person knowingly makes the false declaration or signs any such document then only he will be liable to penalty under Section 114AA - In the present case, there is no case that the Director of company has done any act which specified under Section 114AA. Even the enhancement of value was done on the basis of contemporaneous import, it cannot be said that the Director has done anything to mis-declare the value - neither the penalty on the appellant company nor on the Director was imposable. The penalty is not imposable either on the appellant company or on the Director - appeal allowed - decided in favor of appellant.
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