Admitted shortage in export consignments supported penalty where the explanation failed to show bona fide conduct.

Admitted shortage in export consignments did not make the penalty excessive or unwarranted where the explanation failed to establish bona fide conduct. The exporter's reliance on weighment through an unreliable machine after electricity failure was rejected because proper care was expected and use of an unused machine was avoidable. Since the penalty fell within the statutory range, the authority's discretion was not treated as excessive, and absence of an express finding of mala fide intention did not prevent interference with the penalty challenge from failing.

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Issues: Whether the penalty imposed for shortage found in export consignments was excessive or unwarranted in the absence of mala fide intention.

Analysis: The exporter admitted the shortage. The explanation that weighment was done on an unreliable machine after electricity failure was not accepted as showing bona fide conduct, since proper care was expected and the use of an unused machine was avoidable. The penalty imposed was within the statutory range, and the Collector's discretion was found not to be excessive.

Conclusion: The penalty was upheld and the challenge to its quantum failed.

Ratio Decidendi: Where shortage in export goods is admitted and the explanation does not establish bona fide conduct, a penalty within the statutory limit will not be interfered with merely on the ground that no mala fide intention was expressly found.

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