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TMI Blog2015 (11) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... roposing to impose penalties. The notice was adjudicated and a penalty of Rs. 7.00 lakhs was imposed on the appellant-CHA in addition to penalties on the exporter and the steamer agent. The penalty was imposed under Section 114(iii) as the goods were held liable to confiscation under Section 113(g) of the Customs Act, 1962. Aggrieved of the same, the appellant is before me. 3. The learned counsel for the appellant submits that, once the containers are brought to the container yard of the port, the responsibility of the containers safety, storage and loading on to the vessel, etc. are solely that of the shipping line and there is no omission on the part of the CHA as he did not instruct the shipping line to load the container before LEO was obtained and shipping bills submitted to the shipping line. Thus, it is his contention that it is the fault of the shipping line and the appellant is not involved in the matter. The learned counsel also submits that in a similar matter in the case of The Universal Traffic Co. vs. Union of India wherein a penalty was imposed on the CHA for loading the goods on to the vessel without obtaining LEO, the matter has been taken up before the hon'ble B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty. Sections 50 & 51 of the Customs Act, 1962, prescribes the procedure for export of goods and they read as follows:- "SECTION 50. Entry of goods for exportation. - (1) The exporter of any goods shall make entry thereof by presenting electronically to the proper officer in the case of goods to be exported in a vessel or aircraft, a shipping bill, and in the case of goods to be exported by land, a bill of export in the prescribed form. Provided that the Commissioner of Customs may, in cases where it is not feasible to make entry by presenting electronically, allow an entry to be presented in any other manner. (2) The exporter of any goods, while presenting a shipping bill or bill of export, shall make and subscribe to a declaration as to the truth of its contents. SECTION 51. Clearance of goods for exportation. - Where the proper officer is satisfied that any goods entered for export are not prohibited goods and the exporter has paid the duty, if any, assessed thereon and any charges payable under this Act in respect of the same, the proper officer may make an order permitting clearance and loading of the goods for exportation." The exporter or the CHA on his behalf has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tact the customs staff for loading of the goods. Thus unless and until the loading of the export goods on to the vessel is completed, the duty and responsibility cast on the CHA does not come to an end. In case the CHA fails to comply with these statutory provisions, he would be liable for penal consequences. 5.4. As per the provisions of section 113(g) of the Customs Act, "any goods loaded or attempted to be loaded on any conveyance, or water-borne, or attempted to be water-borne for being loaded on any vessel, the eventual destination of which is a place outside India, without the permission of the proper officer shall be liable to confiscation;" Thus any goods which are loaded on to a vessel without the 'Let Export' order issued by the proper officer of customs shall be liable to confiscation. In such an eventuality, under section 114, - "Any person who in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 113, or abets the doing or omission of such an act, shall be liable,- (i) in the case of goods in respect of which any prohibition is in force, to a penalty not exceeding five times the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gless provision of law. It provides that the proper officer of customs may make an order for permitting clearance and loading of the goods for exportation, which would mean that the goods for exportation could not be loaded in the vessel without obtaining permission of the proper officer of customs. It is this permission of the proper officer of customs which is referred to as 'Let Export Order' (LEO) issued to the exporter and therefore the exporter is entitled to the benefit of that order. Conversely, if the exporter chooses to export the goods without obtaining LEO from the proper officer of customs, he is liable for the consequences. What emerges from the provisions of Section 51 of the Act is that any exportation without LEO is prohibited. It would thus appear that goods exported without LEO are liable to confiscation under Section 113 (g) of the Act. Whoever is found to have committed something paving the way for shipment of the goods without LEO or to have omitted to do anything to ensure compliance with the requirement of Section 51 of the Act must be held to have rendered the goods liable to confiscation. All the three appellants are coming within this domain and c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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