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TMI Blog2025 (3) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... dded to the duty short paid while imposition of penalty under Section 114A of the Act. Tribunal and even High Court has repeatedly emphasized that the word used in the section is "or" and not "and". In case of Sony sales Corporation [2021 (3) TMI 174 - KARNATAKA HIGH COURT] Hon'ble Karnataka high Court has held that 'From perusal of the relevant extract of Section 114A, it is evident that the language employed by the Legislature is plain and unambiguous and the provision contains a positive condition with regard to levy of penalty equal to duty or interest and does not contain any negative condition.' Conclusion - The penalty should be equal to the duty or interest as determined, and the word "or" in the provision cannot be interpr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted goods attract BCD @ 5% and CVD @ 12.5%. 2.2 Respondent self assessed duty under the provisions of Section 17 (1) of Customs Act and claimed benefit of free trade agreement under Notification No.046/2011-Cus dated 01.06.2011. Accordingly, NIL BCD was paid because of the said notification. 2.3 After certain inquiries made by the DRI, it was found that the benefit of Notification No. 046/2011-Cus dated 01.06.2011 was not admissible to the respondent and this resulted in short payment of duty to the tune of Rs.3,68,86,757/-. 2.4 Show cause notice dated 18.10.2018 was issued to the respondent asking them to show cause as to why- "i) the duty of Customs amounting to Rs.3,68,86,757/- should not be demanded from them under Sub Section (4) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt has repeatedly emphasized that the word used in the section is "or" and not "and". In case of Sony sales Corporation [2021 (376) ELT 472 (Kar)] Hon'ble Karnataka high Court has held as follows: 10. We have considered the submissions made on both sides and have perused the record. The solitary issue, which arises for consideration in this appeal is with regard to interpretation of provisions of Section 114A of the Act. Before proceeding further, we may take note of the well settled legal principles with regard to the principles of statutory interpretation, which is reproduced below for the facility of reference. The word 'or' is normally disjunctive and 'and' is normally conjunctive but at times they are read as vice versa to give e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -statement or suppression of facts, the person who is liable to pay the duty or interest, as the case may be, as determined under sub-section (2) of section 28 shall, also be liable to pay a penalty equal to the duty or interest so determined: 12. The aforesaid rule of statutory interpretation was referred to by Constitution Bench of the Supreme Court in Indore Development Authority v. Manohar Lal and Others, AIR 2020 SC 1496. From perusal of the relevant extract of Section 114A, it is evident that the language employed by the Legislature is plain and unambiguous and the provision contains a positive condition with regard to levy of penalty equal to duty or interest and does not contain any negative condition. The expression used is 'or' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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