J U D G M E N T

Abdul Rehim , J.

The Commissioner of Customs, Cochin had filed the above Customs Appeal challenging the order of the Customs, Excise & Service Tax Appellate Tribunal, South Zonal Bench, Bangalore in proceedings No.C/641/2009-DB. The respondent herein is the respondent before the Tribunal.

2. The Commissioner of Customs, Cochin, through an order passed on 19.08.2009(Annexure B) had `

imposed a penalty of 70,00,000/-(Rupees Seventy Lakhs) on the respondent herein, under Section 114AA of the Customs Act, 1962 (for short, 'the Act').

3. The appellant/Revenue filed appeal against the above said order before the Tribunal by contending that, the penalty ought to have been imposed under Section 114 , because by virtue of order the Commissioner of Customs it was held that the goods in question are liable to be confiscated and also disallowed the duty drawback to the respondent. The Tribunal found that, since the Commissioner has not imposed penalty under Section 114 and even the show cause notice was not issued proposing imposition of penalty under Section 114 , the relevant claim in the appeal before the Tribunal cannot be granted. Further it was observed that, no ground