High-sea seller not liable for differential customs duty once importer has paid and cleared the goods.

A high-sea seller was not liable for differential customs duty where the purchaser-importer had already paid the duty and cleared the goods. The liability could not be fastened jointly and severally on the seller merely because of the prior sale, absent any finding that the seller was the importer or otherwise legally responsible for the duty shortfall. The absence of any penalty or deliberate offence finding against the seller also supported exclusion of duty liability. The direction imposing differential duty on the seller was therefore set aside.

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Issues: Whether a high-sea seller, who was not the importer and who had not paid the customs duty on the goods, could be saddled with liability to pay the differential customs duty jointly and severally.

Analysis: The appellant was only the high-sea seller. The duty leviable on the goods had already been paid by the purchaser-importer. In these circumstances, any differential duty short-levied in respect of the import could not be fastened on the seller after the goods had been purchased and cleared by the importer. The absence of any penalty or finding of deliberate offence against the appellant also supported the conclusion that he was not to be treated as the importer for duty liability.

Conclusion: The appellant could not be made liable to pay the differential duty jointly and severally, and the direction fastening such liability on him was set aside in his favour.

Ratio Decidendi: A high-sea seller is not liable for differential customs duty on imported goods once the duty is paid by the importer who cleared the goods, unless the seller is shown to be the importer or otherwise legally liable.

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