2003 (10) TMI 151

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..... e issue relates to the liability of the appellants to pay penalty and interest as confirmed against them under Section 112 of the Customs Act. 2. The facts are not much in dispute. The appellants imported various inputs on the strength of quantity Based Advance Licence dated 20th May, 1995. They availed exemption from payment of duty under the exemption Notification No. 82/95, dated 26-5-1995. Th .....

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..... penalty under Section 112(a) of the Act could be imposed nor the interest could be demanded from the appellants. On the other hand, the learned JDR has, however, contended that the provisions of Section 111(o) stood violated when the appellants committed breach of the terms of the exemption notification and as such the penalty under Section 112(a) had been rightly imposed. 4. But, in my view, th .....

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..... nalties on the importer in the event of his failure to discharge the export obligation. Clause (b) of this notification rather only stipulates that in such an event, the importer will be liable to pay the sum equal to the duty leviable on the goods, if no exemption was allowed. The appellants had already paid the entire duty amount on demand. Therefore, the ratio of the law laid down in the above .....

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