2015 (3) TMI 1119 - AT - Customs

Recovery of penalty composed u/s 114(i) and u/s 114(AA) of the Customs Act, 1962 - goods were chemicals and appellants mis-declared the goods and these were found to be Muriate of Potash (MOP) by customs and seized - Revenue submits that penalty was rightly imposed when there was absolute confiscation of the goods was made - Held that - When the order does not reflect about redemption of goods on fine, it appears that the goods are prohibitory goods for which customs authority has absolutely confiscated. To protect the interest of Revenue, appellant is directed to deposit ₹ 10,00,000/- within eight weeks from today and make compliance on 01.06.2015.

Summary

The appeal was against a penalty of Rs. 22,00,000 imposed under Sections 114(i) and 114(AA) of the Customs Act, 1962 for mis-declaration of chemicals as 'Muriate of Potash'. The penalty was upheld due to absolute confiscation of the goods, with the appellant directed to deposit Rs. 10,00,000 within eight weeks.