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TMI Blog2019 (11) TMI 1345X X X X Extracts X X X X X X X X Extracts X X X X ..... respondents paid a differential duty of Rs. 3,00,000/-. Shri J. Shamsudeen, Authorised Signatory of the respondents, in his statement dated 27/11/2011 agreed that they have made 18 imports; there were two sets of invoices one showing lesser value to be declared to the customs and the other showing the actual value; Invoices submitted to customs were showing only 9% of the actual value and the difference was being paid in cash to the Chinese exporter. A show-cause notice was issued seeking to revalue the goods imported by respondents vide 14 bills of entry from Rs. 28,27,723/- to Rs. 1,75,47,227/-; demanding differential duty of Rs. 54,76,724/- along with interest and seeking imposition of penalty under 114A/114AA/112(a) of Customs Act, 1962 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ai)] has observed that "Section 114A of Customs Act, 1962 can be invoked against the person from whom the duty is demanded. The Hon'ble Bench also found that the goods were imported in the subject case by a Proprietorship firm and as such the Proprietor is liable to pay duties and therefore the penalty under Section 114A on him is sustainable. Further, the Hon'ble Bench found that since the de facto importer in the case who actually placed the order and was to gain financially from the import, was behind the scene operator who caused the import of goods which are liable to confiscation and therefore is liable to penalty under Section 112(a) of the Customs Act, 1962." In view of the above, penalty under Section 14A should be imposed on Smt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N 114A. Penalty for short-levy or non-levy of duty in certain cases - Where the duty has not been levied or has been short-levied or the interest has not been charged or paid or has [xxx] been part paid or the duty or interest has been erroneously refunded by reason of collusion or any wilful mis-statement or suppression of facts, the person who is liable to pay the duty or interest, as the case may be, as determined under [sub-section (8) of section 28] shall also be liable to pay a penalty equal to the duty or interest so determined : [Provided that where such duty or interest, as the case may be, as determined under [sub-section (8) of section 28], and the interest payable thereon under section [28AA], is paid within thirty days from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 112 or section 114. Explanation. - For the removal of doubts, it is hereby declared that - (i) the provisions of this section shall also apply to cases in which the order determining the duty or interest under [sub-section (8) of section 28] relates to notices issued prior to the date on which the Finance Act, 2000 receives the assent of the President; (ii) any amount paid to the credit of the Central Government prior to the date of communication of the order referred to in the first proviso or the fourth proviso shall be adjusted against the total amount due from such person.] 7. A reading of the above provisions of Section 114A makes it very clear that the penalty under this Section is payable by the person by whom d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... J Shamsudeen has made himself liable to pay penalty under Section 112(a) of the Customs Act, 1962. 9. In view of the above, the revenue appeal if allowed and the impugned order is modified to the following extent. (i) Penalty of Rs. 54,76,724/- along with applicable interest imposed on Shri J. Shamsudeen, Authorised Signatory, of the respondents, under Section 114A of the Customs Act, 1962 is set aside. (ii) We impose penalty, of Rs. 54,76,724/- along with applicable interest, on Smt. V. M. Hareefa, Proprietrix of the respondents, under Section 114A of the Customs Act, 1962. (iii) We impose a penalty of Rs. 5,00,000/-(Rupees Five Lakhs Only) on J. Shamsudeen, authorised signatory, of the respondents, under Section 112(a) of the Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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