2017 (3) TMI 446 - AT - Customs

Amendment in bill of lading - amendment made in bill of lading to substitute M/s Ratnamani Metals and Tubes Ltd, Ahmedabad as consignee in lieu of M/s Kirtanlal & Sons - the charge against the respondent is that the manifest had not made any reference to M/s Ratnamani Metals and Tubes Ltd, Ahmedabad and the goods had been off-loaded in India without being manifested - Held that - There is no doubt that goods have been unloaded, whether inadvertently or otherwise, but there is no allegation that these were not inventorised in the records of the duly appointed custodian. In the absence of any such evidence, invoking of section 111(g) for confiscation is not in accordance with law. the respondent had informed the adjudicating authority that the revision in bill of lading was made after the filing of the manifest and, therefore, no lapse could be attributed to the agent - It must also be noted that amendments in bills of lading, being documents of title, are to be made only on the original bill of lading; multiple versions of documents of title are unheard of. It is also a document of custodianship and a shipping line cannot issue a bill with a later date owing to implications of responsibility for safe delivery of cargo being alienated for the inter regnum - appeal dismissed - decided against Revenue.

Summary

Issues:
- Appeal against dropping of proceedings under Customs Act, 1962
- Amendment of Import General Manifest
- Imposition of penalty for incorrect filing
- Confiscation of goods under section 111(f) and (g)
- Contravention of section 30 and 32 of Customs Act, 1962
- Unloading of goods without proper manifest

Analysis:
The appeal before the Appellate Tribunal CESTAT MUMBAI pertains to the dropping of proceedings against a shipping company for contravention of sections 30 and 32 of the Customs Act, 1962. The Commissioner of Customs (Import), Mumbai had initiated proceedings against the company for amendments made to the Import General Manifest at the request of the shipper. The appeal raised issues regarding the imposition of penalties for incorrect filing and the confiscation of goods under sections 111(f) and (g) of the Act.

The Tribunal noted that the circular issued by the Central Board of Excise & Customs, directing amendments in manifests, did not specify the statutory provision for imposing penalties. The Tribunal emphasized that it is not bound by such instructions and has the authority to implement the Customs Act, 1962 independently. The Tribunal questioned the imposition of penalties without proper adjudication and the lack of notice to the respondent, highlighting the importance of due process in such cases.

Regarding the confiscation of goods under section 111(f) and (g), the Tribunal observed that the goods were included in the manifest and inventoried by the custodian, thus not warranting confiscation. The Tribunal emphasized that the identity of the importer becomes material only during the clearance process, and the filing of the manifest in accordance with section 30 of the Act was crucial. The Tribunal underscored the statutory empowerment of the proper officer to amend manifests, rejecting administrative instructions that impede such authority.

Furthermore, the Tribunal addressed the issue of unloading goods without a proper manifest under section 32 of the Act. It clarified that the purpose of sections 30 and 32 is to ensure goods are cleared from the intended port, emphasizing the importance of accurate manifest details. The Tribunal highlighted that errors in consignee names do not justify confiscation under sections 111(e) and (g), focusing on the substance of the goods rather than minor discrepancies.

In conclusion, the Tribunal dismissed the appeal of the Revenue, emphasizing that the amendments to the bill of lading were made after the manifest filing, attributing no lapse to the agent. The Tribunal upheld the decision of the adjudicating Commissioner, emphasizing the importance of adherence to statutory provisions and due process in customs proceedings.