2013 (1) TMI 362 - HC - Customs

Court quashes penalty under Customs Act, 1962, for failure to consider Tally-sheet

The High Court set aside the Order-in-Original and Order-in-Revision, directing a fresh decision by the Adjudicating Authority considering the Tally-sheet ... Penalty u/s 116 of the Customs Act, 1962 - Short landing of goods - Petitioner contended that Tally-sheet would show that the quantity actually discharged is in consonance with the Bill of Lading and there is no short landing - Held that:- Since the Adjudicating Authority as also Revisional Authority have not considered the Tally-sheet, it would be just and proper to set aside the order - Remand back to pass fresh order-on-merit Issues:Challenge to Order-in-Original and Order-in-Revision based on penalty imposition under Section 116 of the Customs Act, 1962 without considering Tally-sheet showing quantity discharged in line with Bill of Lading.Analysis:The petitioners contested the Order-in-Original dated 27th October, 2008, and the Order-in-Revision issued by the Joint Secretary to the Government of India on 26th December, 2011. The grievance stemmed from the imposition of a penalty under Section 116 of the Customs Act, 1962, which was based on the outturn report of the Port Trust, neglecting the Tally-sheet indicating the actual quantity discharged matching the Bill of Lading. The petitioners argued that there was no short landing as evidenced by the Tally-sheet. The High Court opined that the Adjudicating Authority and Revisional Authority failed to consider the Tally-sheet, leading to an unjust penalty imposition. Consequently, the High Court deemed it appropriate to set aside the Order-in-Original and the Revisional Authority's order, directing the Adjudicating Authority to issue a fresh order after taking into account the Tally-sheet. The High Court ruled in favor of the petitioners, quashing the previous orders and instructing a fresh decision based on the Tally-sheet, with no costs imposed on either party.