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2010 (6) TMI 766 - AT - CustomsConfiscation - redemption fine - the container was loaded on the vessel without obtaining LEO on 21.05.08 and the vessel was sailed on the same day but the LEO was obtained on 22.5.08 - Held that - the Commissioner has found that the exporter has not faulted or played any role for loading of the container on board the vessel without LEO. The delay on the part of the ship line which rendered the subject goods are confiscated are beyond the control of the exporter but he held as the goods were loaded without permission of the proper officer but goods were liable for confiscation and confiscated the goods - It is well settled law in the case of Shiv Kripa Ispat Pvt. Ltd. (supra) that when the goods are not available and are not exported under any bond, redemption fine cannot be imposed - redemption fine set aside. Penalty on CHA - Held that - CHA has acted on behalf of the exporter and in this case the exporter has not been penalized as it was observed that the exporter has not played any role on board the vessel without LEO - Moreover the CHA had informed the shipping line in advance that the documents will be handed over to the shipping line on 22.05.2008 and the only fault of the shipping line, who loaded the vessel without obtaining LEO from the proper officer - penalty on CHA set aside. Penalty on shipping line - Held that - it is an admitted fact that the shipping line has loaded the container on the vessel without obtaining LEO by contravening the Custom laws. For such an act, they are liable for penal action - penal upheld. Appeal allowed - decided partly in favor of appellants.
Issues Involved:
Violation of Customs Act - Loading goods without proper permission; Imposition of redemption fine on exporter; Liability of Clearing House Agent (CHA) for actions of exporter and shipping line; Liability of Shipping Line for loading goods without proper permission; Applicability of penalties on CHA and Shipping Line. Analysis: Violation of Customs Act - Loading goods without proper permission: - The case involved the loading of goods onto a vessel without obtaining the Let Export Order (LEO) from the proper officer, which is a violation of the Customs Act. - The vessel sailed before the LEO was obtained, leading to a show-cause notice and imposition of fines and penalties on the parties involved. Imposition of redemption fine on exporter: - The exporter contended that they complied with all legal provisions and should not be penalized for the actions of the shipping line. - Citing a precedent, the exporter argued that redemption fine cannot be imposed when goods are not available and not exported under any bond. - The Tribunal agreed with the exporter, stating that the redemption fine was not warranted in this case, and allowed the exporter's appeal. Liability of Clearing House Agent (CHA) for actions of exporter and shipping line: - The CHA argued that they acted on the exporter's direction and should not be held liable for the actions of the shipping line. - Referring to a similar case, the CHA requested the waiver of the penalty, which was granted by the Tribunal based on the facts presented. Liability of Shipping Line for loading goods without proper permission: - The shipping line admitted to loading the container without obtaining the LEO but claimed it was done under a bonafide belief. - The Tribunal found the shipping line liable for penal action due to the contravention of customs laws and reduced the penalty based on precedents and considering it a technical breach. Applicability of penalties on CHA and Shipping Line: - The Tribunal differentiated the roles of the parties involved, holding the shipping line primarily responsible for the violation and imposing a reduced penalty. - The penalties on the CHA were waived off based on the agent's actions and communication with the shipping line, aligning with previous decisions in similar cases. In conclusion, the Tribunal disposed of all three appeals, providing relief to the exporter, waiving penalties on the CHA, and reducing the penalty on the shipping line, based on the specific circumstances and legal precedents cited during the proceedings.
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