Penalties in respect of improper importation of goods - CBEC's Customs Manual 2023 - Customs

5. Penalties in respect of improper importation of goods: 5.1 In terms of Section 112 of the Customs Act, 1962 any person, who, in relation to any goods, does or omits to do any act which act or omission would renders such goods liable to confiscation under Section 111 or abets the doing or omission of such an act, or, acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, keeping, concealing, selling or purchasing, or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under Section 111, shall be liable to penalties as follows:- (i) In the case of goods in respect of which any prohibition is in force under the Customs Act, 1962 or any other law for the time being in force, to a penalty not exceeding the value of the goods or Rs.5,000/-, whichever is the greater; (ii) In the case of dutiable goods, other than prohibited goods, subject to the provisions of section 114A, to a penalty not exceeding ten percent (10%) of the duty sought to be evaded or Rs.5,000/-, whichever is higher; provided that where such duty as determined under sub-section (8) of section 28 and the interest payable thereon under section 28AA is paid within 30 days from the date of communication of the order, the amount of penalty liable to be paid by such person under this section shall be 25% of the penalty so determined. (iii) In the case of goods in respect of which the value declared is higher than the value thereof, to a penalty not exceeding the difference between the declared value and the value thereof or Rs.5, 000/-, whichever is the greater; (iv) In the case of goods falling both under (i) and (iii) above, i.e. goods in respect of which any prohibition is in force and the value stated / declared is higher than the value thereof, to a penalty not exceeding the value of the goods or the difference between the declared value and the value thereof or Rs.5,000/-, whichever is the highest; and (v) In the case of goods falling both under clauses (ii) and (iii) above, to a penalty not exceeding the duty sought to be evaded on such goods or the difference between the declared value and the value thereof or Rs.5,000/-, whichever is the highest.