Cus Cir No.61/2002 Date 20/09/2002
- Document type
- Circular
- Reference no.
- H
- Dated
Levy of penalty under section 114A of Customs Act, 1962-Clarification- regarding.
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 mis-statement, or suppression of facts by the said person. Conjunction or in section 114A seems to be creating confusion at the field level.
2. The matter has been examined in consultation with the Ministry of Law. The Ministry of Law, has stated that Maxwells Interpretation of Statutes (p-229) while dealing with conjunctions or and and provides that -
- To carry out the intention of the legislature, it is occasionally found necessary to read conjunctions or and and one for the other.
3. In view of the above, it is clarified that penalty under section 114A of the Customs Act, 1962 should be equivalent to duty and interest. The above-said clarification may kindly be kept in mind while imposing the penalty under section 114A of the Customs Act, 1962.
4. The contents of the Circular may be brought to the notice of all concerned by way of issuing suitable Standing Orders. Kindly acknowledge receipt of the Circular.
Yours faithfully,
(D.S.Garbyal)
Under Secretary to the Government of India
F.NO.437/9/98-CUS.IV