CESTAT Upholds Penalty imposed u/s 114AA of Customs Act on Import of LED lights on ground of Mis-declared Quantity of Goods in Bill of Entry [Read Order]

The New-Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) upheld the penalties imposed under section 114AA of the Customs Act,1962 on the import of Light Emitting Diode (LED) lights on the ground of mis-declared quantity of the goods in the bill of entry. 

Surendra Electricals, the appellant assessee filed a bill of entry to clear the imported LED lights and the Commissioner (Appeals) for confirming redemption fine and imposition of penalty under section 114AA of the Customs Act. 

Vaibhav Singh, the counsel for the assessee contended that the penalty imported under section 114AA of the Customs Act was not sustainable and it can be imposed only when a person knowingly or intentionally makes, signs, uses, or causes to be made signed or used, any declaration statement or documents which was false or incorrect in any material particular. 

Also submitted that the bill of entry was filed as per the commercial invoice, packing list, bill of lading, etc, what was declared in the bill of entry was as per the documents sent by the suppliers, and the importer had not knowingly or intentionally made or signed any false declaration or submission. 

Rakesh Kumar, the counsel for the department contended that there was misdeclaration of the quantity of the goods they were correctly confiscated under section 111 of the Customs Act and imposed redemption fine. 

Further submitted that the penalty under section 114AA of the Customs Act had been correctly imposed because the assessee had mis-declared the value of the goods and the quantity in the bill of entry filed before the customs authority. 

The Bench observed that the adjudicating authority has correctly held that the appellant had knowingly mis-declared the value of the quantity of the goods in the bill of entry and imposed a penalty under section 114 AA of the Customs Act. 

The two-member bench comprising Rachna Gupta (Judicial) and P.V Subba Rao (Technical) upheld the decision made by the Commissioner while dismissing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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