Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | I 962 Ss. 112 Customs Act 114A & I 25: |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Customs Act, 1962; Ss. 112, 114A & 125:Undervaluation - Import of Integrated circuits - Levy of customs duty based upon actual price - Differential amount of duty - Demand of - Penalty & redemption fine - Imposition of - Appeal and cross-appeals - Tribunal enhanced the penalty and the fine - On appeal, Held: Imposing of enhanced penalty by the Tribunal was against the express provisions of law - Hence, penalty reduced to the duty amount in terms of the provision u/s. 114A of the Act - In the facts and under the circumstances of the case, no interference in the order of the Tribunal enhancing the fine is called for.Appellants-assessee had imported Integrated Circuits (ICs) from a firm in Hong Kong. Directorate of Revenue Intelligence (DRI) after examining the consignment found that ICs had been manufactured by a foreign firm. Based upon the information from the firm, the authorities came to the conclusion that the declared price of the goods was undervalued. Taking into consideration the actual price of the goods in question and after adding 10% towards profit of the dealer, the authorities fixed the value of the goods at Rs.23.4 Lac as against the declared value of over 2.3 Lac (CIF Goa). Accordingly, the authorities demanded the differential amount of duty of Rs.4,91,000/- and imposed penalty of Rs.50,000/- under Section 114A of the Customs Act on the firm and Rs.50,000/- on the proprietor of the firm under Section 112 of the Act. Redemption fine of Rs.2,50.000/- under Section 125 of the Act was also imposed on the firm. Both the assessee as well as the Revenue filed separate appeals before the Tribunal. The Customs, Excise and Gold (Control) Appellate Tribunal dismissed the appeal filed by the assessee and accepted the appeal filed by the Revenue and enhanced the amount of penalty on the assessee to Rs.10,00,000/-. However, the penalty imposed on the firm was set aside and the redemption fine was also enhanced to Rs.10,00,000/-. Hence the present appeals. Appellants contended that the maximum penalty which could be imposed under Section 114A of the Act can be equal to the duty demanded which, in the present case, was Rs.4,91,000/- whereas the Tribunal has enhanced it to Rs.10,00,000/-; and that under Section 125 of the Act, Revenue could impose the fine in lieu of confiscation as may be deemed fit but it could not exceed the market price of the goods confiscated, less in the case of imported goods the duty chargeable thereon. But the fine in the instant case has been increased to Rs.10,00,000/- without ascertaining the market value of the goods confiscated. |
Judge | Hon'ble Mr. Justice Ashok Bhan |
Neutral Citation | 2007 INSC 1175 |
Petitioner | M/s. U.k. Enterprises & Anr. |
Respondent | Commissioner Of Customs And Central Excise & Anr. |
SCR | [2007] 12 S.C.R. 436 |
Judgement Date | 2007-11-22 |
Case Number | 1389- 1392 |
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