TMI Blog2004 (12) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... e other by the Revenue. The assessee's appeal is against an order of the Commissioner of Customs, Trichy, who imposed a penalty on them under Section 114 of the Customs Act on the ground of misdeclaration of description of goods and its export price. In the Revenue's appeal, the grievance is that the penalty of Rs. 1 lakh imposed by the Commissioner on the party is too small to match the gravity o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This proposal was contested. Ld. Commissioner of Customs, who adjudicated the dispute passed the impugned order, wherein the exported goods were held liable for confiscation under Section 113 and a penalty of Rs. 1 lakh was imposed on the party under Section 114 ibid. In their appeal, the assessee challenges the order of confiscation and penalty. On the other hand, in its appeal, the Revenue want ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly conceded when the assessee came forward to settle the dispute relating to the imports, under the KVS Scheme. The offence of misdeclaration of the export goods should be matched by the quantum of penalty. According to ld. DR, a meagre amount of Rs. 1 lakh would not match the gravity of the said offence. 4. After giving our careful thought to the submissions, we find that the impugned order was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption. For instance, Clause (a) reads : "any goods attempted to be exported by sea or air......". Clause (b) reads : "any goods attempted to be exported by land on inland water …..". The rest of the clauses also read likewise. We have no doubt in our mind that, when the above provision was enacted, Parliament was conscious of the fact that goods already exported out of Indian territory was incapab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t goods is, therefore, bad in law. Consequently, the order of penalty on the exporter under Section 114 is not sustainable. In the result, we set aside the order of the Commissioner and allow the assessee's appeal with consequential reliefs if any. Consequently, the Revenue's appeal seeking enhancement of penalty gets dismissed. (Dictated and pronounced in open Court). - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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