1996 (12) TMI 65 - HC - Central Excise

Summary

Issues:
Discrepancy in cargo discharge at Madras Port, imposition of penalty under Customs Act, denial of personal hearing during revision petition.

Analysis:
1. The petitioner, a steamer agency, faced a discrepancy in cargo discharge at Madras Port, with 24 excess bales and one excess pallet recorded. Subsequently, a penalty of Rs. 61,192.88 was imposed under Section 116 of the Customs Act for the short landing of 117 bales of natural raw rubber. Despite explanations and appeals, the penalty was upheld by the authorities.

2. The petitioner contended that the tally receipts did not indicate any short landing, but the appellate authority and Government relied on the out turn statement issued by the Port Trust. The petitioner failed to provide documentary evidence to support its claim, leading to the confirmation of the penalty by the appellate authority and Government.

3. The petitioner sought a revision petition before the Government of India, reiterating the grounds and requesting a personal hearing. However, the request for a personal hearing was denied by the Government, citing the lack of complex issues. The Government emphasized that the petitioner had opportunities for personal hearings during the proceedings before lower authorities, which were not fully utilized.

4. The petitioner argued that the Government should have granted a personal hearing during the revision petition. The Government justified its decision by highlighting the previous personal hearings accorded to the petitioner and the lack of substantiation of the case by the petitioner during those hearings. Citing a Supreme Court judgment, the Government maintained that not every stage necessitates a personal hearing.

5. The Court dismissed the writ petition, emphasizing that the authorities did not commit any apparent error of law in relying on the out turn statement issued by the Port Trust. The Court found no reason to doubt the authenticity of the information provided by the Port Trust, as evidenced by the details in the out turn statements. Consequently, the petition was dismissed, and no costs were awarded.

In conclusion, the Court upheld the penalty imposed under the Customs Act, emphasizing the importance of providing substantiated evidence during proceedings and highlighting the discretionary nature of granting personal hearings at different stages of the legal process.