Yash an importer, imported certain goods on 10th April, 2017 and paid custom duty by understating the value of goods imported. A show cause notice was issued on Yash by the proper officer on 9th August, 2017 demanding du

Where notice under section 28(1)(a) of the Customs Act, 1962 has been served for short/non levy or erroneous refund of duty or interest, for reason other than the reasons of collusion or any wilful misstatement or suppression of facts, penalty will not be imposed. If the proper officer is of the opinion that the amount of duty along with interest leviable under section 28AA or the amount of interest, as the case may be, as specified in the notice, has been paid in full within 30 days from the date of receipt of notice. The proceedings in respect of such person or other persons to whom the notice is served will be deemed to be concluded. Further, if the notice is served in respect of collusion, any mis-statement or suppression of facts for duty or interest which has not been so levied, or short levied or short paid or to whom refund has erroneously been made and the person make payment is full and penalty equal to 15% of the duty specified in the notice within thirty days of the receipt of notice and inform the proper officer, then the proceedings in respect of such person shall be deemed to be conclusive as to the matter stated therein. In the given case, show cause notice was received by Mr. Yash on 14.08.2017 and he paid the duty, interest and applicable penalty on 11.09.2017, which is within 30 days of the receipt of the notice, therefore, if Mr. Yash has understated the value of imported goods with a fraudulent intention and has informed the proper officer of the payment made by him, in writing, in view of the above mentioned provisions, penalty leviable on Mr. Yash will be 15% of the duty specified in the notice. However, if Mr. Yash has understated the value of imported goods on account of bonafide reasons, no penalty will be imposable on him.