9911796707
TMI Blog1991 (7) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... u of confiscation, and further directing to recover the said amount from the bank guarantee furnished on release of the same under a bond. 2. On 24-10-1986, the aforesaid vessel arrived from Singapore to Bombay, and off-loaded amongst others, the subject container. On the prior information received, the officers of the Customs detained the same, and on examination of the contents, recovered contraband items like VCR, pocket calculators etc. totally valued at Rs. 59,79,000 /-. The container, when examined was found to have lock and seals of the shippers/ (consignors) intact. Further investigations in relation thereto were conducted and finally a show cause notice dated 22-4-1987 was issued, amongst others, to the present appellants. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stuffed in their presence or supervision, nor was it opened and inspected by them any time during the transit. 4. The issue raised for determination is whether the subject container could be considered as package and whether the provisions of Section 118(a) ought to stand attracted or that it ought to be taken as a part of the conveyance, so as to attract the provisions of Section 115 of the Act. 5. Section 118(a) of the Customs Act, reads thus : Where any goods imported in a package are liable to confiscation, the package and any other goods imported in that package shall also be liable to confiscation. Section 115(2) of the Act reads thus : Any conveyance or animal used as a means of transport in the smuggling of any goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f loaded and that the same would be delivered to the consignee in the same condition. He, however, pleaded that the container being the property of the vessel owner and not forming part of said goods, like primary packing, would be returned to them after destuffing. He pleaded that for extending such facilities the shipping companies are required to execute certain bond and undergo-certain formalities vis-a-vis the Customs Authorities, and have to render complete account thereof, and submitted that such services are offered to the shippers, to provide protection against loss, damage, as also safeguard against any pilferage, besides facilitating the loading and unloading operations and saving of time consumed in that regard. He also referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants were held as not involved, they are exonerated from penal liability under Section 112 or from confiscation of the vessel under Section 115, but for the container, there is no qualifying clause or provision and liability to confiscation is duly envisaged in Section 118(a) and there could be no different standard applicable, even when the container is supplied by the Shipping Agencies. 8. As is evident from the Preventive Service Manual, the concept of the container service has come into vogue in or around 1973, and may not be in contemplation when the Customs Act was framed in 1962, otherwise some indication therefore would have been found. As is rightly described by the Ld. Advocate for the appellants, the shipping Agents own ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by making specific provisions in relation to the vessel used as a mode of public transport, vide Section 115(2) of the Act, the Legislature has intended to provide an immunity to the vessels so used against confiscation provided of course, if the owners, agents or persons in charge of such vessels are not aware of the contents they transport and are not knowingly concerned with such transport and take reasonable precaution against their involvement in nefarious activity. Existence of knowledge and/or reasonable belief has thus been made an essential ingredient, even to render the vessel liable to confiscation. 11. Containers, when supplied by the ship owners or their agents for stuffing the consignments by the intended shippers, and when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontainer specifically used as a mode of transport. 14. One cannot overlook the gravity of the position, if a blanket decision of treating the container as mode of transport is given, as in such cases, even the shippers could plead accordingly and claim benefit, and for the purpose, a clarificatory note is put that, containers could be deemed as mode of transport, only when they are supplied by the Transporting Agencies and are not only not the part and parcel of the consignment, but are those which the shipping companies or their agents bound themselves down under a bond to properly account for the same and ultimately re-export them within the time specified under Rules or Regulations that may exist at that relevant period. The benefit is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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