https://www.taxtmi.com/caselaws?id=42493 Penalty under Section 116 of the Customs Act cannot be imposed mechanically on a carrier merely because out-turn reports show a shortage. Liability arises only where failure to unload or deficiency remains unsatisfactorily accounted for. Where cargo is removed under port and defence authority control pursuant to government directions, tally and documentation are deficient, and the carrier lacks effective control after discharge, the reported shortlanding may not reliably establish carrier liability. As penalty proceedings are quasi-criminal, surrounding circumstances and deliberate or contumacious conduct require consideration. On these facts, the Section 116 penalty against the carrier was unsustainable and liable to be quashed. en-us Thu, 03 Apr 1986 00:00:00 +0530 Fri, 11 Jun 2010 15:30:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=42493 Penalty under Section 116 of the Customs Act cannot be imposed mechanically on a carrier merely because out-turn reports show a shortage. Liability arises only where failure to unload or deficiency remains unsatisfactorily accounted for. Where cargo is removed under port and defence authority control pursuant to government directions, tally and documentation are deficient, and the carrier lacks effective control after discharge, the reported shortlanding may not reliably establish carrier liability. As penalty proceedings are quasi-criminal, surrounding circumstances and deliberate or contumacious conduct require consideration. On these facts, the Section 116 penalty against the carrier was unsustainable and liable to be quashed. Case-Laws Customs Thu, 03 Apr 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=42493