TMI Blog2003 (7) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... oods were unloaded at Calcutta Port there had been short landing of a small quantity of the total consignment. As per the surveyor's report the entire consignment was off loaded from the vessel whereas as per the Port Trust report there had been short landing. NTPC got the actual quantity of the goods received by them released by payment of customs duty. The duty payable on the consignment was partially exempted under Section 25 of the said Act. NTPC got the actual quantity of the goods released upon payment of actual duty payable on the goods after availing the exemption. The customs authority imposed a penalty upon the shipper being India Steamship Ltd. under Section 116 of the said Act twice the duty which was payable on the said goods w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1962. 6. Section 25 and Section 116 being relevant herein and are quoted below :- "25. Power to grant exemption from duty. - (1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally either absolutely or subject to such conditions (to be fulfilled before or after clearance) as may be specified in the notification goods of any specified description from the whole or any part of duty of customs leviable thereon. (2) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by special order in each case, exempt from payment of duty, for reasons to be stated in such order, any goods, of strat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Publicity and Public Relations on a date on or before the date on which the said notification comes into force. 116. Penalty for not accounting for goods. - If any goods loaded in a conveyance for importation into India, or any goods transhipped under the provisions of this Act or coastal goods carried in a conveyance, are not unloaded at their place of destination in India, or if the quantity unloaded is short of the quantity to be unloaded at that destination, and if the failure to unload or the deficiency is not accounted for to the satisfaction of the [Assistant Commissioner of Customs or Deputy Commissioner of Customs], the person-in-charge of the conveyance shall be liable, - (a) in the case of goods loaded in a conveyance for imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided for penalty twice over the amount of duty the Reviewing Authority was right in directing penalty to be paid at a said rate. 8.For proper appreciation of the point in issue we should find out the true purport of the aforesaid two sections. Section 25 empowers Central Government to exempt certain duties partially or fully either absolutely or subject to any condition over some goods in public interest. Since the subject consignment was required for a power project the Central Government thought it fit to exempt duty partially on the said consignment. That exemption was given so that the consignee could import materials from abroad upon payment of customs duty at a reduced rate. This has nothing to do with penalty attracted under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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