Home Case Index All Cases Customs Customs + CGOVT Customs - 2013 (12) TMI CGOVT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 1464 - CGOVT - CustomsPenalty u/s 116 - short landing quantity - Held that:- Section 30 stipulates delivery of import manifest or import report with true declaration therein. Further Import Manifest (Vessel) Regulations, 1971 provides the nature, condition and position (including status) to be truly declared as per respective declaration form. It is therefore quite clear that “Manifest” is to be considered a basic legal document and the declarations made therein are to be taken as statutory declarations for the purpose of further action under the relevant provisions of Customs Act, 1962. Similarly, Chapter V of the Act provides for levy and assessment of Customs duties and Section 13 thereof when read with provisions of Bill of Entry (Form) Regulations, 1976 the legality of the duty levied in this case can be clearly understood. Further for levy/calculation of impugned penalty, the provisions of Section 116 of the Customs Act, 1962 unambiguously stipulates the levy of penalty not exceeding twice the amount of duty. Vessel sailed from Port of Ruwais Abudhabhi on 3-6-2012 after loading cargo of 36749.322 MT of BYCS in bulk for deliver at Chennai and Vizag Ports. 22000 MT cargo was discharged at Chennai Port in respect of BL No. 1 & 2. The said vessel arrived at Vizag on 24-6-2012 and discharged cargo of 14539 MT in respect of BL No. 3, 4, 5 against the quantity of 14749.322 MT. Applicant has claimed that 0.5% tolerance limit should be worked out on total quantity of 36749.322 MT as 183.75 MT which should be taken into account for arriving at the actual shortlanded quantity. In this regard, it is noted that the vessel has discharged 20000 MT cargo at Chennai port and balance cargo of 14539 MT at Vizag port. This fact is not rebutted by the department. The tolerance limit has to be applied with reference to total bulk cargo of BYCS which was loaded in the vessel. The losses occurred with reference to quantity of 20000 MT discharged at Chennai cannot be attributed only to the quantity of cargo discharged at Vizag. Losses of 0.5% of total cargo loaded in the vessel i.e. 36749.322 MT equal to 183.75 MT is to be considered as genuine losses due to natural causes and as per general practice the said quantity of 183.75 MT is not to be taken as shortlanded quantity. As such actual shortlanded quantity is 210.322 MT - 183.75 MT = 26.572 MT of BYCS on which proportionate custom duty involved is ₹ 66,094 - applicant is liable to penal action under Section 116 of Customs Act, 1962 as held by lower authorities. Keeping in view the overall circumstances of the case, the penalty imposed is quite harsh and should be reduced - Decided partly in favour of assessee.
|