1991 (5) TMI 58 - HC - Customs

Summary

Issues Involved:
1. Jurisdiction of the Collector of Customs to impose penalties under Section 133 of the Customs Act, 1962.
2. Obligation of the petitioners to assist customs officers under Section 151 of the Customs Act.
3. Allegation of obstruction by the petitioners in the rummaging operation conducted by customs officers.
4. Competency of customs officers to detain the vessel and carry out rummaging operations.
5. Validity of the penalty imposed on the petitioners for alleged obstruction.

Detailed Analysis:

1. Jurisdiction of the Collector of Customs to Impose Penalties:

The petitioners challenged the order dated 17-12-1976 by the Collector of Customs and Central Excise, Bhubaneswar, which imposed a penalty of Rs. 1000/- on each petitioner under Section 117 of the Customs Act, 1962. They argued that the Collector of Customs had no jurisdiction to impose such penalties as Section 133 of the Act mandates that such matters should be decided by a competent court of law. The High Court initially agreed with this view, but the Supreme Court remanded the case for fresh disposal, noting that the High Court did not discuss the alleged obstruction by the petitioners.

2. Obligation of the Petitioners to Assist Customs Officers:

The petitioners contended that they were officers of the Paradip Port Trust and not officers as defined under Section 151 of the Customs Act, thereby not obliged to assist customs officers. However, the Supreme Court clarified that the petitioners, in their capacity as port officers, were indeed bound to assist customs officers in the rummaging operation. This point was not pressed by the applicant before the Supreme Court and was not urged before the High Court upon remand.

3. Allegation of Obstruction by the Petitioners:

The core issue was whether the petitioners obstructed the customs officers during the rummaging operation. The Supreme Court observed that obstruction is not confined to physical obstruction and includes any action that makes it more difficult for public servants to carry out their duties. The High Court examined the facts and found that the petitioners, despite being aware of the ongoing rummaging operation and the recovery of contraband goods, shifted the vessel M.V. JAGDARSHAN to a deep-sea location, making it inaccessible for further rummaging. This act was deemed to be an obstruction to the customs officers' duties.

4. Competency of Customs Officers to Detain the Vessel and Carry Out Rummaging Operations:

The Supreme Court affirmed that customs officers were competent to detain the vessel and carry out rummaging operations under the provisions of the Customs Act. The High Court reiterated this competency, emphasizing that the petitioners were obliged to assist in these operations and that their actions in shifting the vessel constituted an obstruction.

5. Validity of the Penalty Imposed on the Petitioners:

The High Court, upon re-examination, upheld the penalty imposed by the Collector of Customs. It noted that the petitioners' explanation for shifting the vessel was not bona fide and amounted to direct obstruction of the rummaging operation. The court concluded that there was no infirmity in the Collector's reasoning and found no reason to interfere with the order.

Conclusion:
The High Court dismissed both writ petitions, affirming the penalty imposed by the Collector of Customs and Central Excise. The court held that the petitioners were indeed obliged to assist customs officers, and their actions in shifting the vessel constituted obstruction, justifying the penalty under Section 117 of the Customs Act, 1962.