Alleged Import of Prohibited Goods but Penalty imposed for Mis-declaration of Assessable Value: Bombay HC directs

The Bombay High Court directed the Customs Department to refund Rs. 5 lakhs to an importer, ruling that penalties for mis-declaration of assessable value cannot be imposed when the primary allegation is the import of prohibited goods. The court found that the penalty was unjustified given the nature of the allegation and ordered the refund with interest. This decision underscores the importance of fair and just penalty impositions by customs authorities and upholding legal standards in enforcement actions.