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TMI Blog2024 (1) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order Commissioner while imposing penalty under Section 114A has imposed penalty equivalent to the duty confirmed without taking into account the interest portion that was leviable on such duty. Relevant parts are reproduced below:- ORDER 1) I confirm the demand of Rs.1,45,13,207/-(Rupees One Crore Forty Five Lakh Thirteen Thousand Two Hundred and Seven only) as Customs duty Central Excise duty (inclusive of Education Cess and Secondary Higher Education Cess and order to recover from the noticee under section 28(4) of the Customs Act, 1962. 2) I confirm the demand of Central Excise duty amounting to Rs.15,10,278/- (Fifteen Lac Ten Thousand Two Hundred and Seventy Eight only) and order to recover from them under Section 11A(4) of the Central Excise Act, 1944. 3) I confirm the demand of CENVAT Credit amounting to Rs.6,02,144/-(Six Lac Two Thousand One Hundred and Forty Four only) and order to recover from them with interest under Rule 14 of the CENVAT Credit Rules, 2004. 4) I confirm the demand of amount of interest of Rs.19,599/-(Rupees Nineteen Thousand Five Hundred Ninety Nine only) and order to recover from them under Section 11AA of the Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cus dated 20.09.2002 to the effect that the penalty under Section 114A shall be equal to the duty and interest thereon. The text of the said circular is reproduced below: Subject : Levy of penalty under section 114A of Customs Act, 1962 - Clarification - regarding. It has been reported that a number of show cause notices were issued proposing the demand of not only duty, but also interest payable in terms of provisions of para 128 of the Hand Book of Procedures (1st April, 1993 31st March, 1997). While the Show Cause Notices have quantified/specified the amount of duty, the interest to be demanded has not been specified, although demands have been raised. It has been reported that in all such cases, penalty under section 114A is being imposed equivalent to the amount of duty which stands determined on the date of adjudication order. The Board has been requested to clarify as to whether mandatory penalty imposed under section 114A of the Customs Act, 1962 would be equal to the amount of duty or it would be equal to duty plus interest. Section 114A provides for levy of penalty equal to the duty or interest payable by a person in cases involving collusion or any willful mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be, as determined under sub-section (2) Section 28 shall, also be liable to pay a penalty equal to the duty or interest so determined 2. The word used in between duty and interest is or . In Maxwell s Interpretation of Statutes p. 229 in dealing with conjunctions or as and , it is said : To carry out the intention of the Legislature, it is occasionally found necessary to read conjunctions or and and one for the other. 3. The Hon ble Supreme Court in a case reported in AIR 1957 SC p. 699 State of Bombay v. R.M.D. Chamarbougwala also read the word or as and to give effect to the clear intention of the legislature. 4. In view of above, it is clear to carry out the intention of the legislature. It is occasionally found necessary to read the conjunction or and and one for the other. A Constitutional Bench of the Hon ble Supreme Court in a case reported in AIR 1963 SC p. 1638 T.S. Govindlalji Maharaj v. State of Rajasthan has also observed that sometimes or must mean and as has been mentioned vide para 39 of the judgment. The administrative deptt. may process the matter keeping in view the above expressed legal position in respect of the word ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... normally conjunctive but at times they are read as vice versa to give effect to the manifest intention of the Legislature as disclosed from the context. As stated by SCRUTTON L.J. : You do sometimes read or as and in a statute. But you do not do it unless you are obliged because or does not generally mean and and and does not generally mean or . And as pointed out by Lord Halsbury the reading of or ; as and is not to be restored to, unless some other part of the same statute or the clear intention of it required that to be done. Where provision is clear and unambiguous the word or cannot be read as and by applying the principle of reading down. ..speaking generally, a distinction may be made between positive and negative conditions prescribed by a statute for acquiring a right or benefit. Positive conditions separated by or and read in the alternative but negative conditions connected by or are construed as cumulative and or is read as nor or and . [See : Principles of Statutory Interpretation by Justice G.P. Singh, 14th Edition.] 11 . In the backdrop of aforesaid well settled ..... X X X X Extracts X X X X X X X X Extracts X X X X
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