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2017 (4) TMI 583 - HC - CustomsImposition of penalty u/s 114 of CA, 1962 - Export of prohibited items - Liability of Customer Freight Station (CFS) and a custodian of goods - goods originally packed in the container, natural granite chips, were substituted clandestinely and without the knowledge of the appellant at the time of transportation to the port for export - According to the appellant, transportation was the domain of custom house agent and not the custodian - Whether there is scope for imposing penalty u/s 114 of CA 1962 in the absence of any knowledge on the part of the appellant of the offence alleged to have been committed by the exporter? Held that: - Increasing clarity has been brought in with regard to the role and responsibility fastened upon the custodian with the evolution of the guidelines from 1993 to 1998. It is made incumbent on the CFS/custodian to assume responsibility, not merely for duty liability on loss/pilferage of goods under transportation, but for the goods itself - The very fact that a custodian is to be held responsible for loss of the goods means that the ultimate responsibility in relation to the contents of the container lies with it. This will include loss of the original goods by substitution which has happened under the watch of the CFS. The custodian is, but one link in the chain of events relating to the movement of goods in the course of import and export. Accepting the argument of the appellant would weaken one link of the chain, thus compromising the entire network. The provisions of section 114 will stand automatically attracted in the event of violations by way of omission and commission of the acts - appeal dismissed - decided against assessee.
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