TaxTMI 
TaxTMI 
2026 (4) TMI 21
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....lant. 2. The facts of the case are that the appellant is a public sector undertaking and as a part of its business it also maintains Inland Container Depots [ICD] and Container Freight Station [CFS] in which imported goods are kept before their clearance by the Customs. Thus, the appellant is the custodian of the goods imported into India through the ICD/CFS until they are handed over to the importer after their clearance from the customs. 3. When goods are imported into India, the exporter gives the goods to master of the vessels or the shipping line and obtains a Bill of Lading [BL] which acts as the document of title to the goods. The exporter sends the BL through the bank to the importer in India. Meanwhile, the goods are transported in the vessel to India. The master of the vessel gives the goods to the port trust which ends his responsibility for the goods. If the goods have to be cleared through the ICD the goods are given by the port trust to the custodian of the ICD which, in this case, is the appellant. 4. The custodian is required to keep the goods safe in its custody. Meanwhile, the importer files the Bill of Entry with the Customs to seek clearance of the good....
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....ion 30 for the arrival of the conveyance in which the said goods were carried." 5. Sometimes, the importer does not clear or warehouse or trans-ship the goods after their importation and they block the customs area. Besides, the custodian will also lose revenue for its services. As per section 48 of the Act, if the goods are not cleared, warehoused or trans-shipped within thirty days after unloading, the proper officer may allow them to be sold by the custodian. Section 48 of the Act is reproduced below: "48. Procedure in case of goods not cleared, warehoused, or transhipped within thirty days after unloading.-If any goods brought into India from a place outside India are not cleared for home consumption or warehoused or transhipped within thirty days from the date of the unloading thereof there of at a customs station or within such further time as the proper officer may allow or if the title to any imported goods is relinquished, such goods may, after notice to the importer and with the permission of the proper officer be sold by the person having the custody thereof: Provided that - (a) animals, perishable goods and hazardous goods, may, with the pe....
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...., security and the surveyor. Each of these documents indicates the seal numbers. The finding in these reports is that the containers had concrete blocks which appeared to be useful for construction. After examination, the containers were sealed with the CONCOR seals. At Serial number 6(A) of the Reports against the question whether the seal was found intact, in three reports "YES" has been marked and in other reports there is no marking as "YES" or "NO". 8. Since the appellant was the custodian as per section 45 of the Act, if any imported goods were pilfered, the appellant was liable to pay duty. In this case, the goods found in the containers were different from the goods described in the IGM. Instead of high value items like Aluminum Ingots, Zinc Ingots, face masks, etc., concrete cement blocks were found. Therefore, the SCN proposed the recovery of duty from the appellant. The appellant resisted the proposals which were, however, confirmed in the impugned order. Submissions of CONCOR 9. Shri Ram Chander Sankhla assisted by Shri Rahul Sankhla, learned counsels for CONCOR made the following submissions: (i) All the containers are received by the shipping line as....
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.... but the provisions of under section 28 of the Act which pertain the demand of duty will equally apply to demands under section 45 of the Act. (x) The demand can only be issued within a reasonable time even if no time limit is fixed. (xi) The goods were not improperly imported hence they were not liable for confiscation and consequently no penalty is imposable on the appellant under section 112 of the Act. (xii) The appellant had no violated any of the regulations of HCCAR. Submissions of the Revenue 10. Shri M.K. Shukla, learned authorized representative for the Revenue vehemently supported the impugned order and submitted as follows: (i) CONCOR has been approved as the custodian under Act and, therefore, has full responsibility for safe custody of the imported goods until they are cleared. It has to maintain complete control over their storage and movement and ensure that the goods were not tampered with or irregularly handled. It is also required to maintain records and audit trials and prevent mis-use of bonded premises. The appellant failed to maintain effective custody of the goods within its premises as required under section 45 of t....