Technical delay in filing an import manifest justified penalty reduction where computer failure caused no suppression and goods were accounted for.

Penalty for delayed filing of an import manifest and unloading of unmanifested goods may be reduced where the default is technical, the delay results from computer failure, no intention to suppress filing is shown, and the goods are duly accounted for. On those facts, the penalty was found excessive and was reduced from Rs. 5 lakhs to Rs. 2 lakhs, with consequential relief.

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Issues: Whether penalty imposed for delay in filing the import manifest and for unloading of unmanifested goods before filing of the manifest required reduction on the ground that the default was technical and the goods had been accounted for.

Analysis: The delay in filing the manifest was accepted to have occurred because of a computer failure, and there was no intention to suppress the filing. The goods involved were also accounted for. In these circumstances, the existing penalty was considered excessive and further leniency was warranted.

Conclusion: The penalty was reduced from Rs. 5 lakhs to Rs. 2 lakhs.

Final Conclusion: The appeal succeeded to the extent of reduction in penalty, with consequential relief.

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