2001 (5) TMI 561 - AT - Customs

Summary

Issues:
- Seizure of M.S. Billets by Customs
- Allegations of unmanifested goods
- Confiscation and penalty imposed
- Appeal against Commissioner's order

Seizure of M.S. Billets by Customs:
The case involved the seizure of 292 pieces of M.S. Billets by the DIU (P) Unit of the Calcutta Customs House. These billets were suspected to be unmanifested and cleared through manipulation of import documents. The vessel carrying the billets arrived at Calcutta Port, discharged its cargo, and left 292 pieces unaccounted for in the shed, leading to their detention.

Allegations of unmanifested goods:
During the investigation, it was revealed that the billets were part of a consignment imported by M/s. TISCO and sold to Nepalese consignees. Survey reports indicated discrepancies in the quantity received by the consignees compared to the Bill of Lading. The Commissioner of Customs ordered the confiscation of the 292 billets and imposed a penalty on both M/s. Oceanic Shipping Agency Pvt. Ltd. and M/s. TISCO under the Customs Act, 1962.

Confiscation and penalty imposed:
The Commissioner's order was challenged through appeals by both parties. The appellants argued that the discrepancy in the number of billets was due to varying lengths and weight differences, leading to a shortage in the delivered quantity. They further presented evidence of subsequent actions taken to rectify the situation, including filing a supplementary IGM for the remaining billets and compensating the Nepalese buyers for the shortfall.

Appeal against Commissioner's order:
Upon review, the Tribunal found that the discrepancy in the number of billets was a result of varying lengths and weight-based transactions. The evidence presented by the appellants, including amended import manifest and compensation to the buyers, supported the claim that the unaccounted billets were not illegally imported. Consequently, the Tribunal allowed the appeals, setting aside the order of the Commissioner of Customs and ruling out the confiscation and penalty imposed on the appellants.