2016 (1) TMI 54 - AT - Customs

Penalty u/s 114A and 112 - Held that - There is only one noticee to whom the show cause notice was issued and adjudication order also has been passed in respect of same noticee i.e. M/s. Star Audio. Revenue has not shown that more than one person/company is involved in the imported goods, therefore it is clear that penalty has been imposed under Section 114A of the Customs Act on the noticee, M/s. Star Audio, therefore appeal is rejected on this count. - Section 114A proviso clearly provides that if penalty has been imposed under Section 114A then no penalty is imposable under Section 112 or 114 - as the goods are not available for the confiscation the question of penalty in lieu of redemption fine does not arise. - Decided partly in favour of assessee.

Summary

Issues involved:
1. Failure to specify the name of the firm/person for penalty under Section 114A of the Customs Act, 1962.
2. Imposition of penalty under Section 112 despite penalty under Section 114A.
3. Imposition of penalty in lieu of Redemption fine.

Analysis:

Issue 1: Failure to specify the name of the firm/person for penalty under Section 114A
The appeal challenged the Commissioner's failure to specify the name of the firm or person for penalty under Section 114A. The Tribunal noted that the show cause notice and adjudication order were directed at a single entity, M/s. Star Audio. Since there was no evidence of multiple persons or companies involved in the import, the penalty was rightly imposed on the noticee, M/s. Star Audio. Consequently, the appeal was rejected on this ground.

Issue 2: Imposition of penalty under Section 112 despite penalty under Section 114A
The second ground of appeal questioned the imposition of penalty under Section 112 despite the penalty under Section 114A. The Tribunal referred to Section 114A's proviso, which clearly states that if a penalty is imposed under Section 114A, no additional penalty can be levied under Section 112 or 114. Therefore, the appeal was accepted on this issue.

Issue 3: Imposition of penalty in lieu of Redemption fine
Regarding the third ground of appeal, which raised concerns about imposing a penalty in lieu of redemption fine, the Tribunal agreed with the Counsel that since the goods were not available for confiscation, the question of imposing a penalty in lieu of redemption fine did not arise. Consequently, the appeal was accepted on this ground as well.

The respondent's absence during the proceedings did not prejudice the outcome. The Tribunal partly allowed the appeal by ruling that penalties under Section 112 and in lieu of redemption fine were not applicable in this case. The judgment clarified the correct application of penalties under the Customs Act, 1962, and upheld the principles outlined in the relevant sections.