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TMI Blog2017 (4) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... that a custodian is to be held responsible for loss of the goods means that the ultimate responsibility in relation to the contents of the container lies with it. This will include loss of the original goods by substitution which has happened under the watch of the CFS. The custodian is, but one link in the chain of events relating to the movement of goods in the course of import and export. Accepting the argument of the appellant would weaken one link of the chain, thus compromising the entire network. The provisions of section 114 will stand automatically attracted in the event of violations by way of omission and commission of the acts - appeal dismissed - decided against assessee. - C.M.A. No. 2853 of 2015 - - - Dated:- 10-4-2017 - Huluvadi G. Ramesh And Anita Sumanth, JJ. For Appellant : Mr. S. Murugappan For Respondent : Mr. A. P. Srinivas JUDGMENT ( Dr. Anita Sumanth, J. ) This Civil Miscellaneous Appeal is filed by the assessee challenging an order of the Customs Excise and Service Tax Appellate Tribunal dated 15.6.2015 confirming imposition of penalty under section 114 of the Customs Act (in short Act ) though reducing the quantum from S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be liable,- (i) in the case of goods in respect of which any prohibition is in force under this Act or any other law for the time being in force, to a penalty ( not exceeding three times the value of the goods as declared by the exporter or the value as determined under this Act) whichever is the greater; (ii) in the case of dutiable goods, other than prohibited goods, subject to the provisions of section 114-A, to a penalty not exceeding ten per cent of the duty sought to be evaded or five thousand rupees, whichever is higher: Provided that where such duty as determined under sub-section(8) of section 28 and the interest payable thereon under section 28-AA is paid within thirty days from the date of communication of the order of the proper officer determining such duty, the amount of penalty liable to be paid by such person under this section shall be twenty five per cent. of the penalty so determined;) (iii) in the case of any other goods, to a penalty not exceeding the value of the goods, as declared by the exporter or the value as determined under this Act, whichever is the greater. 5. The appointment of the appellant as a Container Freight Statio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalties leviable for the goods lost during transshipment from the said customs area to the gateway port/other customs area. 7. A subsequent circular issued in 1998 in No.57/1998, dated 04.08.1998 further elaborated and streamlined the role of a custodian as follows: Various references have been received from Associations of Trade and Ministry of Commerce to allow movement of export goods through containers/trucks from hinterland to gateway Airports for the purpose of exports by air. The matter was discussed in meeting of SCOPE AIR held at Jaipur on 10th September, 1997 also. The matter was examined by Board and it has been decided that the following procedure may be followed for transferring goods from factory of manufacture, ICDs/CFSs to Gateway airports for export of the goods from such airports. The procedure adopted for shipment by air and sea would remain alike. 2. The exiting Scheme provides that full container load (FCL) cargo can be transferred under Costumes/ Central Excise seal from ICD/CFS or from the factories, in case of container stuffed inside the factory, to the Gateway Port. Similarly it is proposed that the goods from the factory of manufacture or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich can be sealed with tamper proof bottle seals, all the packages would be stuffed can be sealed with tamper proof bottle seals, all the packages would be stuffed in the container/trucks under supervision of customs and representatives of the custodians. After the stuffing, the containers/trucks would be sealed with tamper proof bottle seals. The examination order and endorsements that the trucks are sealed would be made on both copies of Shipping Bill and AR4 form, it would be signed by customs as well as custodian's representatives. The seal number would be endorsed on all documents. 6. The custodians would be required to move the goods by road or rail upto Gateway Ports/Airports. 7. At the Gateway Ports/Airports, both the copies of Shipping Bill would be presented by the custodian's representative to the proper officer of Customs who would verify the genuineness of documents and check the marks and numbers of the seals on trucks/containers as recorded on the documents. The customs officer would inspect the seals of trucks/containers and will endorse the two transference copies of Shipping Bill and AR 4 in the following manner, inspected and the seals found int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise staff for above mentioned all related work could be provided on cost recovery basis. 13. In case the exporters desire to get the goods examined and container/trucks stuffed and sealed in factory of manufacture for the purpose of exports from Gateway Ports/Airports, the procedure for examination of goods are sealing packages and trucks as contained in Rule 187 of the Central Excise Rules, 1944 and instructions issued from time to time on the subject, would be followed. Customs House and Central Excise Commissioner may issue suitable Public Notices incorporating the above positions. The difficulty if any in following the above procedure may be brought to the notice of the Board. Though the circular is voluminous, we have thought it fit to extract it in full, in order to place on record, the comprehensive nature of the instructions in regard, to the movement of goods and detailed instructions thereto. 8. The scheme and purport of the arrangement thus indicates clearly that a custodian has, as the name suggests, full custody of the goods entrusted to it from the time of storage till the time the goods are moved, arrive at the gateway port or other customs are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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