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TMI Blog2015 (2) TMI 690X X X X Extracts X X X X X X X X Extracts X X X X ..... ecified agency for carrying out pre-inspection of consignment of Heavy Melting scrap. On going through circular of 56/2004, it can be seen that the whole procedure and precautions was specified particularly in respect of melting scrap which has specific objective to avoid the casualties due to explosion of the explosive contained in the heavy melting scrap. The circular was issued after serious accident took place, wherein due to explosion 10 persons were died. So it is very obvious that precautions prescribed with the sole objective of saving of human lives. Therefore, heavy responsibility have been casted on the agency involved in importation and clearance of consignments of heavy melting scrap. In the present case the submission of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of penalties of ₹ 1 Lakh on M/s. Cosco (India) Shipping Pvt. Ltd and ₹ 50,000/- on Shri Joy Francis, Dy. Manager M/s. Cosco (India) Shipping Pvt. Ltd. under Section 112 (a) of the Customs Act, 1962. The fact of the case is that on matter of import of 'Heavy Melting Scrap' by M/s. Crescent Export shipping Agency, M/s. Cosco (India) Shipping Pvt filed IGM No. 017370 dated 24/12/2004. Mumbai Port Trust asked the importer to take delivery of consignment 376.23 MT 'Heavy Melting Scrap'. Since the importer did not come forward to take delivery of the consignment it remained un-cleared. The importer vide letter dated 23/05/2006 informed Mumbai Port Trust that the said consignment does not belong to them. Thus, the consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -10-2004, which had laid down in para 7 that failure to observe this precaution for import of Heavy Metal Scrap would invite panel action against shipping line. It was also contended that M/s. Cosco (India) Shipping Pvt. Kept in dark the law enforcing agency by not informing them about the arrival of impugned consignment to avoid action and thus by their act of omission and commission for rendered them liable for panel action under section 112(a) of Customs Act, 1962. As regard the charges on Shri Joy Francis in the show cause notice alleged that he shown gross negligence in handling such dangerous cargo and aided and abetted the import of impugned goods. In the adjudication order dated 13/1/2011 penalties were imposed upon both appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the import consignment of Heavy Melting Scrap which appellant have failed to observe. He also submits that as against consignments valued ₹ 42 lakhs approximately, penalty imposed is only to the extent ₹ 1 lakh and ₹ 50,000/- on the both the appellants. He refers to section 30(2) of the Customs Act, 1962 regarding the responsibility of the shipping agent to provide correct and true information of import consignments. 4. I have carefully considered the submissions made by both the sides. 5. In the facts and circumstances of the case as discussed above, there is no dispute that appellant have not verified the correctness of the inspection report which was supposed to be issued by M/s Moody International Certificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l scrap. From the above specific para of the circular, it is very clear that the shipping line is duty bound to ensure that every consignment of metal scrap in shredded, compressed to loose form is accompanied by such a pre-shipment inspection certificate before it is loaded on the ship and failure of the such compliance, panel action was proposed. 6. In view of this, the mens rea is not required, in failure of such compliance. I am of the view that irrespective of any reason, if directions provided in the circular is not complied with, whether intentional or unintentional, shipping line is bound to face the consequences. As regard penalty on Shri Joy Francis, since he is directly involved in documentation as authorized by the shippin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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