CC Vs. NUCOR WIRES LTD.

JUDGEMENT

(1.) THIS appeal of the Revenue is against the Commissioner's decision to drop the department's proposal for imposing penalty on the respondents under Section 114A of the Customs Act. The hearing notice issued to the respondents has returned with the postal remark "left".

(2.) AFTER examining the records and hearing ld.SDR, we note that the offence alleged against the respondents, in the show -cause notice, was in relation to an import made by them in the year 1995. In the impugned order, ld.Commissioner recorded a clear finding to the effect that the investigation had not proved the actual date of commission of offence. Ld.Commissioner, therefore, gave the benefit of doubt to the party and, accordingly, exonerated them from penal liability under Section 114A. In the present appeal, the department also does not specify the date on which, or the period during which the respondents committed the "offence attracting Section 114A." The appellant, on the other hand, insists that the respondents are liable to be penalized under the said provision even if the offence was committed prior to 28.9.96, the date on which the provision came into force. According to the appellant, for invoking this penal provision in respect of an offence committed prior to 28.9.96, it would be enough if the SCN and subsequent proceedings are taken after the said date, This (SIC) requires to be rejected at once. The import in question had taken place, admittedly, prior to 28.9.96. The appellant is not able to say for certain as to when the respondents committed the offence punishable under Section 114A. The Revenue, however would not dispute the fact that a penalty under Section 114A is consequential to demand of duty under Section 28 of the Customs Act. The SCN demanded duty on the goods imported by the respondents prior to 28.9.96. Therefore, the cause of action for a penalty under Section 114A would arise on the date of import only, which, in the present case, is prior to 28.9.96. Ld.Commissioner (Appeals) dropped penalty by giving the benefit of doubt to the respondents. We have no doubt in our mind and we hold that, on the facts of this case, Section 114A of the Customs Act is not applicable to the respondents. In the result, the appeal of the Revenue gets dismissed.