Penalty for short-landing must match proved goods value; unsupported higher valuation led to reduction of the imposed amount.

Penalty for short-landing was to be assessed on the proved value of the disputed goods, where the supplier's certificate supported the valuation and no contrary material discredited it. On that basis, the quantified penalty had to reflect the accepted value of Pipe No. 269 rather than a higher figure. The note states that the originally imposed and affirmed penalty was excessive because it exceeded the maximum permissible amount on the accepted valuation, and that it was reduced accordingly.

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Issues: Whether the penalty imposed for short-landing of the goods under Item No. 133 was liable to be reduced on the basis of the certificate showing the value of Pipe No. 269 at 564.

Analysis: The value of the disputed pipe was supported by a supplier's certificate, and no material was available to discredit that valuation. On that basis, the penalty had to be computed with reference to the proved value of the short-landed goods. The amount of Rs. 76,098 imposed and affirmed below was found to be excessive, as the maximum penalty on the accepted valuation could not exceed Rs. 20,556.

Conclusion: The penalty was held to be wrongly quantified and was reduced to Rs. 20,556, in favour of the petitioners.

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