Benefit u/s 28(5) Of Customs Act applicable if Reduced Penalty of 15% of BCD Paid within 30 days of Receipt of SCN: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that the benefit under section 28(5) of the Customs Act applies when a reduced penalty of 15% of the Basic Customs Duty (BCD) amount is paid within thirty days of receiving the Show Cause Notice (SCN). \r

Honda Cars India Limited, the appellant, imported goods and wrongly classified them, depositing the differential BCD and interest upon admission. The appellant then paid 15% of the BCD amount as penalty within the stipulated timeframe. Despite the department's argument against invoking section 28(5), citing delayed payment, the tribunal referenced a Gujarat High Court case, extending the deadline to the next working day if the last day falls on a holiday. \r

Therefore, the tribunal upheld the appellant's compliance and reduced penalty payment.