Any person who, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 113, or abets the doing or omission of such an act, shall be liable,—
(i) in the case of goods in respect of which any prohibition is in force under this Act or any other law for the time being in force, to a penalty 5 [not exceeding three times the value of the goods as declared by the exporter or the value as determined under this Act], whichever is the greater;
6 [(ii) in the case of dutiable goods, other than prohibited goods, subject to the provisions of section 114A, to a penalty not exceeding ten per cent. of the duty sought to be evaded or five thousand rupees, whichever is higher:
Provided that where such duty as determined under sub-section (8) of section 28 and the interest payable thereon under section 28AA is paid within thirty days from the date of communication of the order of the proper officer determining such duty, the amount of penalty liable to be paid by such person under this section shall be twenty-five per cent. of the penalty so determined;]
7 [(iii) in the case of any other goods, to a penalty not exceeding the value of the goods, as declared by the exporter or the value as determined under this Act, whichever is the greater.]
8 [114A. Penalty for short-levy or non-levy of duty in certain cases.—Where the duty has not been been levied or has been short-levied or the interest has not been charged or paid or has been part paid or the duty or interest has been erroneously refunded by reason of collusion or any wilful mis-statement or suppression of facts, the person who is liable to pay the duty or interest, as the case may be, as determined under 9 [sub-section (8) of section 28] shall, also be liable to pay a penalty equal to the duty or interest so determined:]
10 [Provided that where such duty or interest, as the case may be, as determined under 9 [sub-section (8) of section 28], and the interest payable thereon under section 11 [28AA], is paid within thirty days from the date of the communication of the order of the proper officer determining such duty, the amount of penalty
1. Subs. by Act 32 of 2003, s. 116, for clause (i) (w.e.f. 14-5-2003).
2. Ins. by Act 49 of 1991, s. 120 (w.e.f. 27-9-1991).
3. The words ―under a claim for drawback‖ omitted by Act 32 of 2003, s. 116 (w.e.f. 14-5-2003).
4. Ins. by Act 12 of 1969, s. 5 (w.e.f. 3-1-1969).
5. Subs. by Act 32 of 2003, s. 117, for ―not exceeding the value of the goods or five thousand rupees‖ (w.e.f. 14-5-2003).
6. Subs. by Act 20 of 2015, s. 84, for clause (ii) (w.e.f. 14-5-2015).
7. Subs. by Act 32 of 2003, s. 117, for clause (iii) (w.e.f. 14-5-2003).
8. Ins. by Act 33 of 1996, s. 64 (w.e.f. 28-9-1996).
9. Subs. by Act 8 of 2011, s. 48, for ―sub-section (2) of section 28‖ (w.e.f. 8-4-2011).
10. Subs. by Act 10 of 2000, s. 85, for the first and second provisos (w.e.f. 12-5-2000).
11. Subs. by Act 8 of 2011, s. 48, for ―28AB‖ (w.e.f. 8-4-2011).
78 liable to be paid by such person under this section shall be twenty-five per cent. of the duty or interest, as the case may be, so determined:
Provided further that the benefit of reduced penalty under the first proviso shall be available subject to the condition that the amount of penalty so determined has also been paid within the period of thirty days referred to in that proviso:
Provided also that where the duty or interest determined to be payable is reduced or increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, for the purposes of this section, the duty or interest as reduced or increased, as the case may be, shall be taken into account:
Provided also that in a case where the duty or interest determined to be payable is increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, the benefit of reduced penalty under the first proviso shall be available if the amount of the duty or the interest so increased, along with the interest payable thereon under section 1 [28AA], and twenty-five per cent. of the consequential increase in penalty have also been paid within thirty days of the communication of the order by which such increase in the duty or interest takes effect:
Provided also that where any penalty has been levied under this section, no penalty shall be levied under section 112 or section 114.]
Explanation.—For the removal of doubts, it is hereby declared that—
(i) the provisions of this section shall also apply to cases in which the order determining the duty or interest under 2 [sub-section (8) of section 28] relates to notices issued prior to the date on which the Finance Act, 2000 (10 of 2000) receives the assent of the President;
(ii) any amount paid to the credit of the Central Government prior to the date of communication of the order referred to in the first proviso or the fourth proviso shall be adjusted against the total amount due from such person.]
3 [114AA. Penalty for use of false and incorrect material.—If a person knowingly or intentionally makes, signs or uses, or causes to be made, signed or used, any declaration, statement or document which is false or incorrect in any material particular, in the transaction of any business for the purposes of this Act, shall be liable to a penalty not exceeding five times the value of goods.]