HELLENIC LINES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The 1st petitioners are a Foreign Company and owners of a steamship known as "s.s. Helenic Ideal", while the 2nd petitioners are the Bombay Agents of the 1st petitioners.

(2.) The steamer s.s. Helenic Ideal arrived in Port of Bombay in about November 1972 loaded with bales of rags and garments. The imported bales of rags and garments were governed by IGM No. 818 dated November 18, 1972 and they were covered by Item Nos. 50, 89, 91, 27, 28 and 26. The petitioners had landed the entire cargo at the Bombay Port Trust Docks but about 48 bales were in loose condition, while the remaining 572 bales were landed in sound condition. The Port Trust authorities had issued out-turn report which erroneously stated that there were short landing of certain goods by the petitioners. The short landing certificate was issued on November 16, 1972.

(3.) On November 24, 1975, the petitioners were served with the show cause notice by the Assistant Collector of Customs (Manifest Clearance Department) in exercise of the powers under Section 116 of the Customs Act to show cause why penalty should not be imposed for violation of Section 116 of the Customs Act. The petitioners replied on December 1975, but the Assistant Collector in Customs by his order dated February 10, 1976 imposed a penalty of Rs. 7,957 in respect of Item Nos. 50, 89, 91, 27 and 28 and the Deputy Collector of Customs by his order February 11, 1976 imposed a penalty of Rs. 25,522.50 in respect of Item No. 26. The Assistant Collector held that the claim of the petitioners that the short landed goods were landed in loose condition was not supported by any documentary evidence.