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TMI Blog1994 (12) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor of Customs (Appeals), Calcutta. 2. Succinctly stated the Assistant Collector imposed under Section 116 of the Customs Act, 1962, a penalty of Rs. 4,13,000/- on the applicants for short landing 22 drums of Iodine which were manifested against line No. 70 Rotation No. 426/89 in respect of Vessel S.S. STEFAN czarniecki. Collector (Appeals) rejected their appeal. 3. Shri R.P. Mitra and Shri S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lcutta High Court decision in the case of Scindia Steam Navigation Co. Ltd. [1993 (63) E.L.T. 34 (Cal.)] to say that their liability is limited to only one drum and not for the 21 drums which have been unloaded and sought setting aside of the Collector (Appeals)'s orders. 4. Government have gone through the records of the case. Section 116 of the Customs Act, 1962, imposes strict liability upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... others conniving with him from practising fraud upon the Government. It is the considered view of the Government that until and unless the goods are properly and adequately handed over to the recipients (consignees) or the custodian (port trust authorities) it is the responsibility of the carrier of the conveyance to guard the said goods from any shortages. Hence this plea fails. 5. The relianc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s based on certain exemption notifications, the conditions of which naturally cannot be complied with in respect of short landed goods. The Collector (Appeals) has erred in holding that the adjudicating authority did not commit any mistake while imposing the penalty if it applied the higher (chargeable) rate of duty i.e. 70% basic plus 45% auxiliary. Government do not endorse such an action. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le rate of duty was applied). To that extent the order of the lower authorities are improper, illegal and invalid. In the circumstances, the amount of penalty of Rs. 4,13,000/- imposed under Section 116 is reduced to Rs. 2,10,000/- with respect to the figures indicated in the original show cause notice. It is ordered accordingly. 7. The revision application succeeds to the above extent. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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