Penalty for short-levy or non-levy of duty in certain cases. -

¹[SECTION 114A.  

Where the duty has not 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 ²[sub-section (8) of section 28] shall also be liable to pay a penalty equal to the duty or interest so determined:]

³[Provided that where such duty or interest, as the case may be, as determined under ²[sub-section (8) of section 28], and the interest payable thereon under section ⁴[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 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 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 ⁴[28AA], and twenty-five percent 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 sub-section (8) of section 28 relates to notices issued prior to the date* on which the Finance Act, 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.]

Note :-

1. Inserted by Act 33 of 1996, section 64 (w.e.f. 28.09.1996).

2. Substituted by Act 8 of 2011, section 48 (a), for “sub-section (2) of section 28” (w.e.f. “08.04.2001).

3. Substituted by Act 10 of 2000, section 85, for the first and second provisos (w.e.f. 12.05.2000).

4. Substituted by Act 8 of 2011, section 48 (b), for “28AB” (w.e.f. “08.04.2001)*12th May, 2000.