2005 (10) TMI 363 - AT - Customs

Summary

Issues:
1. Imposition of penalty on shipping line for contraband articles in consignments.
2. Reliance on certificate for cargo verification by shipping line.
3. Rejection of applications and deposit requirements for appeal hearings.

Analysis:
1. The judgment addresses the imposition of penalties on a shipping line for consignments containing contraband articles like shells and cartridges. The Regional Manager of the appellant, representing the applicants, argued that some containers did not contain contraband items. However, the Tribunal held that the penalty was rightly imposed on the consignments covering such items, regardless of their removal. The Tribunal emphasized that the presence of contraband in some containers justified the penalties imposed on the entire consignments, rejecting any different view on this issue.

2. The second issue pertains to the contention that the shipping line could not be expected to physically verify the cargo and relied on certificates. The Tribunal referred to Public Notice 20/2004, which mandated shipping lines to ensure that metal scrap consignments were accompanied by a pre-shipment inspection certificate. The absence of such certificates from the certified agency, Moody International (India) P. Ltd., led the Tribunal to dismiss the argument that the shipping line was justified in relying on certificates for cargo verification.

3. Lastly, the Tribunal rejected all applications based on the earlier order and the additional contentions presented. The applicants were given eight weeks to deposit the amounts specified in the impugned orders. Failure to comply with the deposit requirement would result in the dismissal of the relevant appeals. The Tribunal scheduled the appeals for final hearing if the deposits were made within the stipulated timeframe, indicating that all appeals would be heard together with Appeal No. C/511/2005 if the amounts were deposited.

This judgment underscores the importance of compliance with regulations regarding cargo verification and the consequences of penalties imposed on shipping lines for contraband articles in consignments. The Tribunal's decision reaffirms the liability of shipping lines to ensure compliance with relevant procedures and certificates to avoid penalties and legal repercussions.