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Issues: Challenge to show cause notice under Section 116 of the Customs Act, 1963 regarding alleged short landing of consignment of white crystal sugar.
Analysis: 1. The petitioner, a steamer agent at Kolkata port, challenged a show cause notice dated 4th September, 2001, related to the discharge of a consignment of white crystal sugar from the vessel MV Far East in November 1999. 2. The petitioner was responsible for the delivery of the consignment, and an application was submitted by a clearing agent for permission to discharge the sugar in barges, endorsed by the petitioner. 3. Despite a complaint of short landing by a consignee, a survey commissioned by the insurers found no evidence of short landing. However, the impugned notice alleged short landing based on a report by Port Trust authorities. 4. The Port Trust Authorities certified that the vessel discharged the entire cargo into private barges, not under their jurisdiction, and were not in a position to issue an Out Turn Report. 5. In an appeal, the Division Bench directed the respondent authorities to file an Affidavit-in-opposition, which was not done, leaving the averments in the writ petition uncontroverted. 6. The communication from Port Trust Authorities revealed an erroneous assumption as the basis of the show cause notice, leading to the conclusion that no show cause or penalty should be imposed on the petitioners. 7. Consequently, the High Court allowed the writ application, setting aside and quashing the show cause notice dated 4th September, 2001, and directed the supply of an urgent certified copy of the order to the parties upon application and compliance with formalities.
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