Customs penalty requires deliberate breach; marginal shipping bill shortage and oversight did not justify action.

Penalty for shortage and alleged misdeclaration in an export shipping bill was held unjustified where the quantity discrepancy was marginal, the declared net weight had been entered by oversight, and the record showed no deliberate attempt to evade duty or defraud the Revenue. Penal action under the Customs Act is not automatic and requires contumacious conduct or a deliberate statutory breach; in the absence of such findings, action under Sections 113 and 114 could not be sustained. No penalty was exigible on the facts, and the Revenue's challenge failed.

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Issues: Whether penalty was warranted for the shortage and alleged misdeclaration in the export shipping bill under the Customs Act, 1962.

Analysis: The shortage in quantity was marginal and the explanation that the declared net weight had been entered by oversight was accepted by the authorities below. The record showed no deliberate attempt to evade duty or defraud the Revenue. Penalty is not to be imposed as a matter of course and is attracted only where the facts disclose contumacious conduct or a deliberate statutory violation. In the absence of any such finding, the proposed action under Sections 113 and 114 was not justified.

Conclusion: No penalty was exigible on the facts, and the Revenue's challenge failed.

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