TMI Blog1983 (11) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... l m.v. "RISHI VISHWAMITRA" which had arrived at the Port of Bombay from Gulf Port. During the course of search, nine gunny packages were found tied to the ceiling brackets at the fresh water tank situated in the steering gear from room at the after of the vessel. The goods of foreign origin totally valued at Rs. 63,445/ J180 were recovered. On January 24, 1979, during the further search, goods of foreign origin valued at Rs. 80,563/- were found. Again on January 27, 1979, the vessel was searched and the goods of foreign origin of the value of Rs. 53,410/- were recovered. The goods were seized as unclaimed and were confiscated under the provisions of the Customs Act. During the course of the investigation, statements of Master, Chief Enginee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsonal penalty imposed on the 4th Engineer and the challenge in the two petitions was restricted only to the order of confiscation of the vessel and the personal penalty imposed on the owners and the Master. The learned Counsel urged that the Additional Collector has recorded a clear-cut finding that the evidence does not indicate that the Master or the owners had prior knowledge of the goods being secreted on board or they had connived in any manner in the secreting of the goods. The Additional Collector of Customs, after recording this finding, proceeded to order confiscation of the ship under Section 115(2) of the Customs Act on the ground that the owners and the Master have not taken any precaution as envisaged under Section 115(2) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iscation of the vessel under sub-section (2) of Section 115 of the Customs Act, 1962 and the order of confiscation, therefore, requires to be set aside. 5. Shri Venkateshwaran then submitted that the personal penalty imposed on the owners and the Master is misconceived and cannot be sustained. The personal penalty has been imposed in exercise of the powers conferred under Section 112 of the Customs Act and that section, inter alia, provides that any person who does or omits to do any act, which act or omission would render such goods liable to confiscation under Section 111 of the Act shall be liable to pay personal penalty. Shri Venkateshwaran urges that the Additional Collector has recorded a finding that there is no evidence whatsoever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... smuggling of the goods on the vessel. It is impossible to accede to this submission. The plain reading of Section 112 of the Act makes it clear that personal penalty can be imposed provided the owner or the Master of the ship does any act or omits to do any act with the knowledge that their act or omission would render confiscation of the goods under Section 111 of the Act. The section pre-supposes that act or failure on the part of any person is with prior knowledge of the existence of the goods on the vessel. In absence of any knowledge of the existence of the goods, it is impossible to imagine that the owner or the Master were required to file any import manifest or import report setting out the list of such goods. In my judgment, the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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