Customs Act, 1962 — Chapter XIV: Confiscation of Goods and Conveyances and Imposition of Penalties
114A. Penalty for short-levy or non-levy of duty in certain cases
Where duty has not been levied/paid, short-levied/short-paid, or erroneously refunded, by reason of collusion, wilful mis-statement or suppression of facts, the person liable to pay the duty as determined under section 28(8) is also liable to a penalty equal to the duty so determined. Proviso: where such duty, along with interest, is paid within 30 days of communication of the order, the penalty payable is reduced to 25% of the duty determined, provided the reduced penalty is also paid within that period. Explanation: this section does not apply to cases where the amount of duty involved is less than one lakh rupees. A subsequent order enhancing the duty results in the interest and penalty being payable on such increased duty.
