Section 112(a)(ii) Penalty on Short-Paid Customs Duty Struck Down by CESTAT Delhi

Vikas Singh Vs Principal Commissioner of Customs (CESTAT Delhi) Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, has set aside a penalty of Rs. 50 lakhs imposed on Vikas Singh, Managing Director of M/s. MMTC-Pamp India Pvt. Ltd., under Section 112(a)(ii) of the Customs Act, 1962. The Tribunal ruled that a penalty under this section cannot be levied when there is no conscious attempt to evade duty, even in cases of short-paid duty. The Principal Commissioner of Customs, ACC (Import), New Delhi, had imposed the penalty, asserting that Singh suppressed the fact that differentia...