2005 (6) TMI 48 - HC - Customs

Court upholds penalty on steamer agent under Customs Act for cargo short landing via feeder vessels. Agent found liable despite shipper defense. Appellate authority adjusts penalty.

The court upheld the penalty imposed on the petitioner, a steamer agent, under Section 116 of the Customs Act for the short landing of cargo transhipped ... Penalty - Short landing of goods Issues:Challenge to penalty order under Customs Act for short landing of cargo, Liability of steamer agent for transhipped cargo, Interpretation of Section 116 of the Customs Act.Analysis:1. The petitioner challenged a penalty order imposed under the Customs Act for the short landing of cargo. The petitioner acted as a steamer agent for a vessel owned by a shipping company. The cargo in question was transhipped through feeder vessels from Singapore/Colombo to Madras. The Assistant Collector of Customs imposed a penalty due to the short landing of one package, as no satisfactory explanation was provided.2. The petitioner contended that they were not responsible for the cargo under dispute as the delivery order was issued by another shipping service. The petitioner argued that the responsibility for the cargo lay with the shippers and not with them. However, the original authority held the steamer agent liable under Section 116 of the Customs Act for the short landing, leading to the imposition of a penalty.3. The original authority considered two key issues: whether there was a short landing and the liability for the short landing. Relying on Section 116 of the Customs Act, the authority concluded that the steamer agent is considered the person in charge of the conveyance and thus liable for penalties. The appellate authority modified the penalty amount but upheld the liability of the petitioner under the Customs Act.4. The main contention raised by the petitioner was that, as the transhipment was of Full Container Load (FCL) and the seals were intact, they should not be held responsible. However, the authorities held the petitioner accountable based on the interpretation of Section 116 of the Customs Act.5. The interpretation of Section 116 of the Customs Act was crucial in this case. The provision holds the person in charge of the conveyance liable for penalties if goods are not unloaded or are short of the required quantity. The revisional authority considered the nature of the transhipment and concluded that the carrier, in this case, the steamer agent, was responsible due to the factual circumstances surrounding the short landing.6. The judgment referenced a Bombay High Court decision regarding cargo in containers, distinguishing between Full Container Load and Less Container Load scenarios. The conclusion was based on factual findings that indicated the cargo was not solely Full Container Load, leading to the responsibility falling on the carrier for the short landing.7. Despite the petitioner's arguments and the opportunity to present a case, the authorities upheld the penalty based on the factual conclusions and the application of Section 116 of the Customs Act. The court found no grounds to interfere with the authorities' decisions and dismissed the writ petition, suggesting the petitioner pursue recovery from the relevant party through legal means.