1986 (10) TMI 156 - AT - Customs

Summary

Issues:
1. Seizure of contraband goods from a ship by customs authorities.
2. Liability of the Master and Chief Officer of the ship for the seized goods.
3. Imposition of penalties and fines on the individuals and the Shipping Corporation.

Analysis:

Issue 1: Seizure of contraband goods from a ship by customs authorities
The case involved the seizure of contraband goods, including video cassette recorders and tapes, from a ship by customs authorities based on the reasonable belief that the goods were of foreign origin and smuggled into the country. The goods were seized from the masthouse of the vessel, leading to further investigation and legal proceedings against the individuals involved.

Issue 2: Liability of the Master and Chief Officer of the ship for the seized goods
The Manager of the Shipping Corporation contended that neither the Master nor the Chief Officer could have been aware of the contraband goods' presence, emphasizing that penalties cannot be imposed unless there is evidence of their knowledge or connivance. However, it was established that the Chief Officer was in charge of the masthouse where the goods were found, and he possessed all the keys, making him responsible for the stored goods. The Master, despite a previous seizure on the same ship, was deemed to have not exercised proper vigilance, leading to the confirmation of penalties against both individuals.

Issue 3: Imposition of penalties and fines on the individuals and the Shipping Corporation
The tribunal confirmed penalties against the Master and the Chief Officer, but considering the circumstances, reduced the penalty on the Master from Rs. 25,000 to Rs. 5,000. The Chief Officer failed to provide evidence to support his claim of lack of knowledge about the seized goods, leading to the maintenance of the penalty imposed on him. The Shipping Corporation was held liable for confiscation of the goods under Section 115(2) of the Act, with the fine reduced from Rs. 4,00,000 to Rs. 50,000 in the interest of justice.

In conclusion, the tribunal dismissed the appeal with modifications to the penalties and fines imposed on the individuals and the Shipping Corporation, based on the evidence and circumstances presented during the proceedings.