9911796707
TMI Blog2024 (12) TMI 800X X X X Extracts X X X X X X X X Extracts X X X X ..... intly and severally with another party - duty is payable by M/s. BGH Exim Ltd (seller of goods) which has already been paid and the case has been settled under settlement Commission - undervaluation of goods by BGH by bifurcating the value of imported goods - HELD THAT:- From plain reading of the Section, it is clear that penalty under Section 114 A can be imposed only when the duty is payable. As per the facts of the present case, firstly, as per the impugned order the duty is payable by M/s. BGH Exim Ltd which has already been paid and the case has been settled under settlement Commission. Secondly, the demand in the show cause notice was proposed jointly and severally on M/s. BGH Exim Ltd as well as the present appellants. As per the set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been imposed under Section 114A and the lower authority has dropped penalty under Section 112. Therefore, the present appellants filed these appeals seeking setting aside the penalty imposed under Section 114 A of Customs Act. 2. Shri Rajesh Chhibber, Learned Advocate appearing on behalf of the appellants submits that admittedly the custom duty demanded in the impugned order has been paid by the M/s. BGH Exim Ltd and the case of M/s. BGH Exim Ltd has been settled by the settlement Commissioner. As per the impugned order, no demand is payable by the present appellants. Firstly, demand cannot be raised jointly and severally as held in catena of judgments. Therefore, consequential penalty under Section 114 A cannot be imposed. Secondly, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of the communication of the order of the proper officer determining such duty, the amount of penalty liable to be paid by such person under this section shall be twenty-five per cent of the duty or interest, as the case may be, so determined : Provided further that the benefit of reduced penalty under the first proviso shall be available subject to the condition that the amount of penalty so determined has also been paid within the period of thirty days referred to in that proviso : Provided also that where the duty or interest determined to be payable is reduced or increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, for the purposes of this section, the duty or interest as redu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case, firstly, as per the impugned order the duty is payable by M/s. BGH Exim Ltd which has already been paid and the case has been settled under settlement Commission. Secondly, the demand in the show cause notice was proposed jointly and severally on M/s. BGH Exim Ltd as well as the present appellants. As per the settled legal position, duty cannot be demanded jointly and severally and in the facts of the present case the duty was confirmed only against M/s. BGH Exim Ltd. Therefore, there is absolutely no reason to impose penalty under Section 114A. 5. Accordingly, I the set aside the penalties imposed on the present appellants and allow the appeals with consequential relief. ( Operative portion dictated in open court ) - ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
