Penalty u/s 114A of Customs Act not imposable in absence of any duty demand

Vanick Oils and Fats Pvt Ltd Vs Commissioner of Central Excise (CESTAT Chandigarh) CESTAT Chandigarh held that penalty under section 114A of the Customs Act, 1962 not imposable in absence of any duty demand. Penalty u/s 114A is invariably linked to the quantum of duty evaded. Facts- M/s Vanick Oils & Fats Ltd. have imported 2,26,800 kgs of Hydrogenated Vegetable oils (Vanaspati Ghee) and filed bill of entry no. 1203 dated 11.07.2007. On the basis of test report dated 02.08.2007 given by Central Food Laboratory, a quantity of 45,120 Kg was found to be adulterated and unfit for human consump...