1998 (8) TMI 195 - AT - Customs

Summary

Issues:
Appeal against confiscation of imported Cassia under Customs Act, 1962 and imposition of penalty.

Analysis:
The appeals were against the confiscation of Cassia imports under Section 111 of the Customs Act, 1962, and the penalty imposed under Section 112. The consignments arrived in Bombay from Singapore on a ship that sailed from Dubai earlier. The bills of lading were dated 4-11-1988, and a certificate confirmed the cargo loaded in Singapore on 14-11-1988. The contention was whether the imports were covered under the Open General Licence (OGL) before its amendment on 29-11-1988.

The Department argued that the cargo was loaded on the return voyage from Japan on 8th December 1988, thus not eligible for OGL benefits. They claimed the bills of lading mentioning the earlier voyage were invalid. However, the carrier's certificate confirmed the cargo loaded on 14-11-1988. The export manifest did not contradict this, showing the cargo on board when the ship left Singapore on 8th December. The different voyage numbers were deemed insignificant legally regarding liabilities.

It was concluded that the cargo was indeed loaded on 14-11-1988 in Singapore, covered by the OGL before its policy amendment. The discrepancy in voyage numbers and the vessel's return to Singapore on a different voyage were not deemed suspicious. The issuance of bills of lading signified the carrier's liability, regardless of the voyage number. Therefore, the appeals were allowed, and the impugned order of confiscation and penalty was set aside.