The Customs Act, 1962
112. PENALTY FOR IMPROPER IMPORTATION OF GOODS, ETC. –
Any person, – (a) 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 111, or abets the doing or omission of such an act, or
(b) who acquires possession of or is in any way concerned in carrying, removing, depositing, harboring, keeping, concealing, selling or purchasing, or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under section 111, 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 1not exceeding five times the value of the goods or one thousand rupees, whichever is the greater;
2(ii) in the case of dutiable goods, other than prohibited goods, to a penaltynot exceeding five times the duty sought to be evaded on such goods or one thousand rupees, whichever is the greater;
(iii) in the case of goods in respect of which the value stated in the entry made under this Act or in the case of baggage, in the declaration made under section 77 (in either case hereafter in this section referred to as the declared value) is higher than the value thereof, to a penalty not exceeding five times the difference between the declared value and the value thereof or one thousand rupees, whichever is the greater;
(iv) in the case of goods falling both under clauses (i) and (iii), to a penalty not exceeding five times the value of the goods or five times the difference between the declared value and the value thereof or one thousand rupees, whichever is the highest;
(v) in the case of goods falling both under clauses (ii) and (iii), to a penalty not exceeding five times the duty sought to be evaded on such goods or five times the difference between the declared value and the value thereof or one thousand rupees, whichever is the highest.
Comments
(i) Where the goods were liable to confiscation under section 111 (m), the undisputed facts clearly bring the persons within the ambit of section 112 of the Act; Pine Chemical Suppliers v.Collector of Customs (Bombay), AIR 1993 SC 1185.
(ii) Unless it can be established that in the guise of importing a second hand machinery in fact that the importer has imported substantially a new machinery, it is not possible to come to the conclusion that the import was in contravention of the import licence keeping in mind the object of the import licence; K.R. Steel Union Ltd. v. Commissioner of Customs, AIR 2001 SC 1899.
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1. Subs. by Act 14 of 2001, sec. 107, for certain words (w.e.f. 11-5-2001).
2. Ins. by Act 36 of 1973, sec. 3 (w.e.f. 1-9-1973).
