1987 (6) TMI 44

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....ng Calcutta. Its cargo was said to be less than that shown in the manifest submitted under the Customs Act. A person in charge of the ship satisfied the Customs authorities that the goods in the ship were not for export. The respondents, it is alleged, had passed a bond accepting their liability to pay the duty and penalty, if any. On 4th December, 1973, the Customs authorities issued notices calling upon respondents to show cause as to why penalty should not be imposed upon them under Section 116 of the Customs Act. The respondents sought adjournments from time to time, and, apparently some sort of hearing was scheduled for 15th October 1974, at which the respondents were not present. On 7th December 1974, the respondents addressed a lette....

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.... bond under which they were deemed liable. Their liability extended to making up for duty not paid. The requisite hearing had been offered. It was the respondents who had failed to turn up for that hearing before the Assistant Collector. In any case, the Orders assailed could be impugned in appeal under the Customs Act itself, and, this not having been done, the court should not entertain the writ petition. 3. The learned Single Judge negatived the pleas urged on behalf of the appellants. He held that Sections 28 and 147 of the Customs Act applied. The Customs authorities had acted unjustly and inequitably. The rule was made absolute with parties were being left to bear their own costs. 4. Having heard Counsel, we find no substance in....

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....he can reach the satisfaction prescribed by that section, only after considering the material factors. In the instant case, the vessel steamed into Bombay Port in 1967. The show cause notice was given nearly 7 years later. A great deal of time intervened between the dates fixed for hearing and the passing of the order. In the meantime, a communication of some importance had been received. Yet the Assistant Collector chose to disregard it and passed a mechanical order reciting that there had not been a satisfactory account for the shortage. The satisfaction prescribed by Section 116 has not been properly reached. For compliance with that section, it was necessary to assess or scrutinise the reason given by the respondents. An order passed me....