Penalties in respect of improper importation of goods, etc. [Section 112]:
(1) Any person 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
(2) Any person who acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, 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 to penalty in the following manner:
| S.No | Goods | Maximum Penalty |
| 1 | In the case of prohibited goods | (a) Value of the goods
or (b) ` 5,000, whichever is greater |
| 2 | In the case of dutiable goods other than prohibited goods | (a) 10% of the duty sought to be evaded on such goods
or (b) ` 5,000, whichever is greater. Further, such penalty will be subject to the provisions of section 114A. However, where such duty as determined under section 28(8) and the interest payable thereon under section 28AA is paid within 30 days from the date of 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 25% of the penalty so determined. |
| 3 | In the case of goods in respect of which:-
(i) Value stated in Bill of entry or (ii) 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. |
(a) Difference between the declared value and the value thereof
or (b) ` 5,000, whichever is greater |
| 4 | In case the goods are prohibited and value is mis-declared | (a) Value of the goods
or (b) Difference between the declared value and the value thereof or (c) ` 5,000, whichever is highest. |
| 5 | In case the goods are dutiable (other than prohibited goods), and the value is mis-declared | (a) Duty sought to be evaded on such goods
or (b) Difference between the declared value and the value thereof or (c) ` 5,000, whichever is highest. |