COMMR. OF CUS. Vs. A.P. PINHERIO

JUDGEMENT

(1.) THE above Civil Miscellaneous Appeals filed by the Revenue is directed against the order dated 14 -6 -2007 made in Final Order No. 733 of 2007 on the file of the Customs, Excise and Service Tax Appellate Tribunal, (2007 (217) E.L.T. 70 (Tri. -Chen.)]. By the said order, the Tribunal reduced the fine amount to Rs. 50,000/ - and penalty to Rs. 10.00 lakhs. Challenging the said order, the Revenue has preferred the above appeals, which has been admitted by this court on the following substantial questions of law :

(2.) WHETHER the Tribunal is correct in holding the penalty equal to duty imposable under Section 114A of the Customs Act, 1962 as the Maximum penalty which can be reduced by discretion?

(3.) THE respondent has filed his reply to the show cause notice and on adjudication, the Original Authority, by order dated 14 -10 -1999, confirmed the proposal in the show cause notice and held that the imported sea mammals were classifiable under CTH 0106 and demanded duty of Rs. 45,71,951/ - under Section 28(2) of the Customs Act read with proviso to Section 28(1) along with interest Further, the imported sea mammals were confiscated under Section 111(m) and (o) of the Customs Act and were allowed to be redeemed on payment of fine of Rs. 1,50,000/ -. Penalty of Rs. 45,71,951/ -, i.e., equivalent to the amount of duty, was also imposed under Section 114A of the Customs Act on the company and Rs. 50,000/ - on the Managing Director of the company.