2016 (6) TMI 626 - HC - Customs

Customs Act Penalty Upheld for Cargo Unloading Failure: Agent's Liability Clarified

M/s. Caravel Logistics Pvt. Ltd. Versus The Joint Secretary (RA), Government of India, Ministry of Finance, The Commissioner of Customs (Appeals), The Joint Commissioner of Customs (MCD), The Deputy Commissioner of Customs (MCD)

M/s. Caravel Logistics Pvt. Ltd. Versus The Joint Secretary (RA), Government of India, Ministry of Finance, The Commissioner of Customs (Appeals), The ... Issues Involved:1. Legality of the penalty imposed under Section 116 of the Customs Act, 1962.2. Liability of the agent under Section 148 of the Customs Act, 1962.3. Interpretation of the term 'person-in-charge' under Section 2(31) of the Customs Act, 1962.4. Validity of the Import General Manifest (IGM) and its declarations under Section 30 of the Customs Act, 1962.Detailed Analysis:1. Legality of the penalty imposed under Section 116 of the Customs Act, 1962:The principal question was whether the imposition of a penalty under Section 116 of the Customs Act, 1962, was proper and justified. The court noted that Section 116 stipulates a penalty for not accounting for goods loaded in a conveyance for importation into India if they are not unloaded at their destination. The uncontroverted facts established that the Import General Manifest was filed with a proper declaration, the seals on the 40 containers were intact, but the containers were found empty, indicating the manifested cargo had not been delivered. Thus, the court upheld the penalty imposed by the primary authority, as the failure to unload the goods was not satisfactorily accounted for.2. Liability of the agent under Section 148 of the Customs Act, 1962:The appellant argued that the penalty could not be imposed on them as they were not the 'person-in-charge' of the conveyance. However, the court highlighted Section 148, which extends the liability to the agent appointed by the person-in-charge of the conveyance. The court emphasized that the agent is liable for all obligations imposed on the person-in-charge by the Act and to penalties and confiscations incurred in respect of that matter. The court concluded that the appellant, acting as an agent, was liable under Section 148 for the penalty imposed under Section 116.3. Interpretation of the term 'person-in-charge' under Section 2(31) of the Customs Act, 1962:The court examined the definition of 'person-in-charge' under Section 2(31) of the Act, which includes the master of a vessel, the commander or pilot-in-charge of an aircraft, the conductor or guard of a railway train, or the driver of any other conveyance. The court noted that while the master of the vessel is the person-in-charge, Section 148 allows for the agent to act on behalf of the person-in-charge. Therefore, the appellant, as the agent, was deemed equally responsible for fulfilling the obligations of the person-in-charge.4. Validity of the Import General Manifest (IGM) and its declarations under Section 30 of the Customs Act, 1962:The court underscored the importance of the Import General Manifest (IGM) under Section 30, which requires the person-in-charge or any other person specified by the Central Government to deliver the manifest with a declaration of its truthfulness. The court noted that the IGM is a crucial document for customs procedures, and the declarations made therein are legally binding. The appellant, having filed the IGM, was responsible for its contents and the short landing of the cargo. The court affirmed that the appellant, acting on behalf of the person-in-charge, was liable for the penalty due to the discrepancies in the cargo delivery.Conclusion:The court dismissed the appeal, affirming the penalty imposed under Section 116 of the Customs Act, 1962. The appellant, as the agent of the person-in-charge, was held liable under Section 148 for the short landing of the cargo. The court also upheld the validity and binding nature of the declarations in the Import General Manifest under Section 30. The judgment emphasized the comprehensive liability of agents acting on behalf of the person-in-charge in customs procedures.