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2020 (1) TMI 478 - AT - CustomsMisdeclaration of imported goods - Behind the ‘Rice Cookers’, ‘Cigarettes’ of foreign origin were found - prohibited goods or not - imposition of penalty u/s 112 of CA - quantum of penalty - HELD THAT:- Shri Pawan Kumar Ralli, Shri Naresh Dutta and Shri Sreepraksh Tiwary were complicit in this smuggling racket and hence liable for penalty under Section 112. As per the statutory provisions of Section 112, the cases are divided in three categories for the purpose of computation of maximum penalty imposable. One of the categories is of those cases wherein the value declared is higher than the actual value of goods in question - In the instant case, the actual value of goods is found to be much higher than the value declared. Therefore, this category is not applicable. The second category is of prohibited goods. In the show cause notice, it is stated that Rule 11 of the Foreign Trade (Regulation) Rules, 1993 stipulates that on importation of goods, the owner shall state the true description in the Bill of Entry and the goods in question falls in the category of prohibited goods, by virtue of Section 111(d) of the Customs Act, 1962, renders the goods in question as prohibited. As per the judgment of Hon’ble High Court in Gopal Saha vs. Commissioner of Customs [2016 (5) TMI 83 - CALCUTTA HIGH COURT], the goods in question cannot be termed as ‘prohibited goods’ merely for misdeclaration in the Bills of Entry, for the purpose of imposing penalty under Section 112. Now, the only category left is of dutiable goods other than prohibited goods. In this category, maximum penalty impossible in 10% of duty sought to be evaded or five thousand rupees, whichever is higher, In the present case, the Customs Duty sought to be evaded is nowhere quantified. Learned Authorized Representative for the Revenue also failed to help in this regard. Now, therefore, maximum penalty impossible in the instant case is Rupees Five Thousand only. Accordingly, the penalty imposed upon Shri Pawan Kumar Ralli, Shri Naresh Dutta and Shri Sreepraksh Tiwary is reduced to ₹ 5,000/- each. Appeal allowed in part.
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