Short-landing adjustment permits set-off of excess cargo within the same shipment, reducing penalty for the unexplained balance.

Excess landed cargo could be adjusted against short-landing within the same shipment where the record and survey findings showed that part of the shortage was satisfactorily explained. A pro rata adjustment was considered appropriate, but only to the extent the excess could properly be linked to the short-landing, leaving liability for the unexpained balance. On that basis, the excess landing was allowed to be set off in part and the penalty under section 116 of the Customs Act, 1962 was reduced accordingly.

---

---

Issues: Whether excess landed cargo could be adjusted against the short-landing found in the same shipment, and whether the penalty imposed under section 116 of the Customs Act, 1962 required reduction on that basis.

Analysis: The shipment involved multiple line numbers from the same vessel and voyage, and the excess landing shown by the record was accepted as explaining part of the shortage. The reported survey findings supported the conclusion that a substantial part of the short-landing stood satisfactorily accounted for, though the balance excess relating to a different line item could not be fully credited to the applicant. On that basis, a pro rata adjustment of the excess landed quantity was considered appropriate while maintaining liability for the unexpained portion.

Conclusion: The excess landed cargo was allowed to be adjusted to the extent of 255 bags, and the penalty under section 116 of the Customs Act, 1962 was reduced accordingly.

---