TaxTMI 
TaxTMI 
2019 (10) TMI 18
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.... These appeals have been filed by M/s. Atlantic Shipping Pvt. Limited (hereinafter referred to as Atlantic for short) and M/s. General Gas Carrier Corporation Xi Limited against confiscation of goods, imposition of redemption fine and penalties. Revenue is also in appeal against dropping of penalty against Shri T.A. Akbarali, Master of the vessel. 2. Ld. Counsel for the appellants pointed out that in respect of Vessel MT LPG/C Earnest berthed in Kandla Port on 14.09.2010 and was boarded by Customs officers. It was found that the ship was carrying Propane Gas approximately 509MT which was not declared either in the arrival report or in the Form -III Cargo declaration. The shipping agent as well the Master of vessel could not produce the ....
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....ps property and not to be discharged at Port. He stated that the said Propane Gas was required for cooling of cargo tanks meant for loading LPG. M/s. Alantic also communicated vide letter dated 20.09.2010 that 509MT of seized propane gas is a store and is required as coolant on board the vessel for loading the cargo LPG. On the request, the provisional release of said 509MT propane gas was allowed after furnishing the necessary bond and other security for the purpose. Show cause notice was issued to the appellant for confiscation of 509 MT of propane gas under Section 111 (f) of Customs Act 1962 and for imposition of penalty under Section 112(a) of the Customs Act. The said proceedings were confirmed by the lower authorities however, penalt....
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....essurized NA NA (3) Refrigerated 0.275 barg(S)/ 0.4 barg(H) -50 deg C At page 19 of the said document, it was mentioned that the said vessel is certified to carry following items:- CARGO - GENERAL INFORMATION List of products which the Ship is Certified to Carry Anhydrous Ammonia, 1,3-Butadiene, Butane (iso and normal), Butylene, Propane (pure), Commercial Propane (maximum 3.5 mole % ethane in liquid phase), propylene, VCM (maximum filling limit all cargo tanks = 70 %). On page 27 of the said document prescribed the pre-loading conditions of the ship as follow:- B17 PRE-LOADING CONDITIONS In the table below, show time and quality of coolant required to cool dow....
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....relied on the decision of Hon'ble Apex Court in the case of Chairman, SEBI vs. Shriram Mutual Fund - (2006) 5 SCC 361. He also relied on the decision of the Hon'ble High Court in the case of Bansal Industries - 2007 (207) ELT 346 (Mad.) wherein it has been held that mens rea is not necessary for imposition of penalty. 6. We have gone through the rival submissions. The facts admitted by both sides are that the ship carried on board propane gas was not declared. After the same was noticed by the Customs Officers on board, the master of vessel vide letter dated 14.09.2010, declared as follows:- "Dated : 14/09/2010 @ Kandla To The Boarding Officer, Customs Kandla Sir, Subject : PR....
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....hipping Pvt. Limited In the revised declaration, Propane Gas 509MT was declared as ship store. 7. From the above it is apparent that propane was not declared at all in the original declaration. The presence of propane gas was noticed on the vessel first declared as Cargo however, Atlantic later on declared that it was not cargo but ship store. In this context, it is observed that the propane gas was ship store. Ld. Counsel produced the documents relating to said vessel C ERNEST N. In the said documents, it has been mentioned that it is a certified cargo to carry the following:- CARGO - GENERAL INFORMATION List of products which the Ship is Certified to Carry Anhydrous Ammonia, 1,3-Butadiene, Butane (iso and ....