COMMISSIONER OF CUSTOMS Vs. POWERICA LTD.

JUDGEMENT

(1.) The revenue has preferred this appeal challenging the order passed by the Tribunal, which has held that when the duty is paid before the issue of show cause notice imposition of penalty and Interest is not justified.

(2.) From the order in original, it in clear, on the ground of misdescription of the goods imported after the came was noticed when the authorities initiated (sic) proceedings by issue of show cause notice, the Assessee requested for waiver of notice and promptly paid the duty and interest payable thereon. Thereafter, the adjudicating authority adjudicated the dispute and held the case of misdescription is made out. But taking a lenient view of the matter, as the Assessee had admitted liability to pay duty and interest, imposed a penalty of Rs. 1 lakh. The same was challenged, by the Assessee before the Appellate Commissioner to dismiss the appeal. The Tribunal in appeal held referring to several judgments of the Supreme Court, that once duty is paid before issue of show (sic) notice, interest and penalty cannot be levied and thus set aside the order imposing penalty, Aggrieved by the said order, the revenue is in appeal.

(3.) As is clear from, the facts set out above the observation made by the Tribunal is not proper. The Assessee has paid the duty and interest. However, a penalty of Rs. 1 lakh was imposed by the adjudicating authority taking a very lenient view of the matter. The dispute relates to the year 2004-05. By Act 14 of 2001, Sub-Section (2B) has been inserted to Section 28 of the (sic) Act. 1962 which reads as under: