Customs record-keeping breach sustained, but penalty reduced on lenient assessment of the facts.

Custody of imported goods in a customs area carries a duty to maintain records and forward copies to the proper officer. Failure to keep records of bulk cargo received and cleared in the port trust area attracted penalty under the Customs Act, and the violation was sustained. However, the quantum of penalty was considered excessive on the facts, so a lenient view was taken and the penalty was reduced.

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Issues: Whether the penalty imposed for failure to maintain records of imported goods under the Customs Act was liable to be interfered with, and whether the quantum of penalty required reduction.

Analysis: The person having custody of imported goods in a customs area is required to keep a record of such goods and send a copy to the appropriate officer. The finding was that the appellant authorities had not maintained records in respect of bulk cargo received and cleared in the port trust area, attracting penalty under Section 117. On the facts, the maximum penalty was not considered necessary, and a lenient view was taken in fixing the quantum.

Conclusion: The violation was sustained, but the penalty was reduced from Rs. 1,000 to Rs. 500.

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