1986 (10) TMI 157 - AT - Customs

Summary

Issues:
Penalty imposed on the Master of the ship under Section 112 of the Customs Act, 1962.
Fine imposed on the Shipping Corporation of India under Section 115 of the Customs Act, 1962.
Confiscation of goods and vessel in question.

Analysis:

Issue 1: Penalty imposed on the Master of the ship under Section 112 of the Customs Act, 1962.
The Collector of Customs, Cochin imposed a penalty on the Master of the ship for the presence of contraband goods on board. The appellant argued that there was no evidence indicating the Master's knowledge of the contraband goods. It was contended that the Master should not be held liable for illegal acts committed by the crew. However, the authorities found that the Master, being in charge of the conveyance, should have known about the goods' presence. The Tribunal upheld the penalty imposed on the Master, stating that the evidence showed the Master's knowledge of the contraband goods.

Issue 2: Fine imposed on the Shipping Corporation of India under Section 115 of the Customs Act, 1962.
The Shipping Corporation of India was fined under Section 115 of the Customs Act, 1962, as a consequence of the penalty imposed on the Master. The appellant argued that no show cause notice was specifically issued to the Shipping Corporation of India. The Tribunal acknowledged this argument but reduced the fine imposed on the Shipping Corporation of India from Rs. 1,00,000 to Rs. 50,000, considering the circumstances of the case. The Tribunal concluded that the reduction in the fine served the interests of justice.

Issue 3: Confiscation of goods and vessel in question.
The authorities seized contraband goods from the vessel based on a reasonable belief that they were illegal. The Tribunal found that the vessel could be confiscated as a consequence of the penalty imposed on the Master under Section 112 of the Customs Act, 1962. The Tribunal confirmed the confiscation of the goods and the vessel in question.

In conclusion, the Tribunal upheld the penalty imposed on the Master of the ship under Section 112 and reduced the fine imposed on the Shipping Corporation of India under Section 115. The confiscation of the goods and the vessel was confirmed. The appeals were dismissed with the mentioned modifications.