1986 (4) TMI 216 - AT - Customs

Customs Act Penalties Upheld with Exceptions, Interest Refund Appeal Dismissed, Jurisdiction Issue, Evidence Insufficiency

The Tribunal upheld penalties imposed under Section 116 of the Customs Act on Shipping Corporation of India, except for items where double penalties were ... Appeal to Appellate Tribunal for refund of interest on penalty Issues Involved:1. Levy of penalties under Section 116 of the Customs Act.2. Refund of interest charged by the Assistant Collector.3. Specific item-wise claims for relief from penalties.Detailed Analysis:1. Levy of Penalties under Section 116 of the Customs ActThe appellants, Shipping Corporation of India, faced penalties levied by the Dy. Collector and the Assistant Collector for short-landing of cargo due to adverse weather conditions. The penalties were initially reduced by the Appellate Collector, who provided relief based on the Marine Note of Protest and other grounds. The appellants sought complete absolution from liability, arguing that the cargo was either washed away or jettisoned to save the ship. However, the Tribunal noted that the appellants failed to provide substantial documentary evidence beyond the Marine Note of Protest. The Tribunal upheld the penalties, except for items where double penalties were levied (Item Nos. 611 and 297).2. Refund of Interest Charged by the Assistant CollectorThe appellants also sought a refund of interest amounting to Rs. 1,55,429.96P, charged on the penalties. The Tribunal found that the Appellate Collector's order did not direct the payment of interest, and the appellants had voluntarily agreed to pay interest on the bank guarantee. The Tribunal concluded that it had no jurisdiction to address the refund of interest and dismissed this part of the appeal.3. Specific Item-wise Claims for Relief from Penalties- Item No. 805: The Appellate Collector allowed relief for 73 out of 77 drums, accepting they were washed away or jettisoned. The Tribunal upheld the penalty for the remaining 4 drums due to a lack of evidence.- Item No. 227, 423, 76, 139, 397: The appellants did not press the appeal for these items, and no relief was granted.- Item No. 611: The penalty was levied twice. The Tribunal ordered a refund of one set of penalties amounting to Rs. 1,537.62.- Item No. 297: Similarly, the penalty was levied twice. The Tribunal ordered a refund of one set of penalties amounting to Rs. 2,998.64.- Item No. 40: The Tribunal found the penalty correctly levied and did not grant relief.- Item No. 204: The appellants admitted that this item was not covered by the Appellate Collector's order, and no relief was granted.- Item No. 622, 656, 704: The appellants failed to provide evidence supporting their claims of shortages due to rough weather. The Tribunal did not grant relief for these items.ConclusionThe Tribunal upheld the penalties imposed by the lower authorities, with modifications only for items 611 and 297 where double penalties were levied. The appeal for the refund of interest was dismissed due to lack of jurisdiction. The appellants' claims for relief on other items were rejected due to insufficient evidence.