VARUN SHIPPING CO LTD Vs. GOVINDAS S TAMPI

JUDGEMENT

(1.) These petitions can be disposed of together inasmuch as their facts are similar and they involve a common question. The facts that are stated are the facts of the first petition.

(2.) On 9th October 1977 the vessel M.T. 'Aryadoot' belonging to the petitioners, arrived at Bombay from Iran bringing a cargo of aviation gasoline. The fuel was pumped from the vessel into the storage tanks of the Indian Oil Corporation. The pipeline along which the fuel travelled is above 17 kilometers in length.

(3.) Almost six months after, the petitioners received from the Assistant Collector of Customs a notice which stated that the outturn of the vessel disclosed shortages. The petitioners were called upon to show cause within 15 days why a penalty should not be imposed upon them under Section 116 of the Customs Act, 1962. The quantity short landed was stated to be 31.846 M.Ts. On 25th May 1978 the petitioners asked the Assistant Collector of Customs for extension of time by one month from 27th May 1978 to reply to the said notice. On 28th September 1978 the Deputy Collector of Customs passed an ex part order stating that the vessel had arrived from Iran had discharged 3718.274 M.Ts., as against the bill of lading quantity of 3788 M.Ts. of fuel. Ocean loss of 69.726 M.Ts. was noticed. The benefit of maximum permissible loss of 1% i.e., 37.880 M.Ts. was extended, in spite of which the excess shortage of 31.846 M.Ts. was observed. In these circumstances, the show-cause under Section 116 had been issued. The petitioners had asked for time which had been extended upto 26th June 1978. The petitioners had not replied even after grant of time. It was held that the shortage was not satisfactorily accounted for. The penalty of Rs. 1 lakh, representing the actual Customs duty on the same at the rate applicable to the fuel on the date of entry inward of the vessel, was imposed upon the petitioners under Section 116.