1986 (6) TMI 46 - HC - Customs

Summary

Issues:
1. Application of Section 116 of the Customs Act, 1962 to Nepal cargo imported free of duty.
2. Validity of penalty imposed on the petitioner for alleged short-landing of cargo.
3. Writ jurisdiction of the High Court under Article 226 of the Constitution of India.

Detailed Analysis:
1. The writ application under Article 226 of the Constitution of India challenged the penalty imposed by the Deputy Collector of Customs on the petitioner for the alleged short-landing of cargo imported from Korea for transit to Nepal. The petitioner contended that Section 116 of the Customs Act, 1962 should not apply to Nepal cargo imported duty-free. The Deputy Collector rejected this argument, leading to the petitioner seeking relief through the Writ Jurisdiction of the High Court.

2. The respondent opposed the application, asserting that Section 116 of the Customs Act, 1962 is applicable even to goods imported free of duty. The penalty was imposed on the petitioner as steamer agents for the short-landing of the cargo. The Court referred to previous judgments on similar issues, including Matter Nos. 1704 of 1981 and 715 of 1982, where it was held that Section 116 applied to Nepal cargo imported free of duty for exportation to Nepal under a special treaty. As no other points were raised in the petition, the Court found no grounds to interfere with the penalty imposed by the Deputy Collector.

3. The High Court, in its judgment, held that the impugned order imposing a penalty under Section 116 of the Customs Act, 1962 was not legally flawed or perverse. Therefore, the Court discharged the Rule and vacated any interim orders. The Court allowed the respondents to enforce the penalty through the bank guarantee or other lawful means. No costs were awarded, and the petitioner was granted leave to file a renewed bank guarantee promptly. Additionally, the verbal request for a stay of the order was considered and rejected by the Court.