MAERSK INDIA LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The vessel MV Bux Crown arrived at JNPT on 12 -9 -1995. The agents M/s. Maersk India Ltd. filed an IGM on the same date. There was an LCL container containing cargo meant for various importers. Certain machinery parts contained in the container were not manifested. Subsequently, the agents requested for amendment of the IGM on 31 -10 -1995. Penal action was proposed on them under Section 112 of the Customs Act on the observation that unmanifested goods were liable to confiscation. The agents waived the issue of show cause notice as well as the personal hearing. The Commissioner imposed penalty of Rs. two lakhs on the present appellants under Section 112(a) of the Customs Act, 1962. Hence, the present appeal.

(2.) Shri Gomes appearing for the appellants submitted that subsequent to the order and payment of penalty, the amendment to the manifest was permitted. He submitted a photocopy of the amended IGM on 1 -12 -1995. It is his statement that subsequently the goods were cleared in due course without any action.

(3.) The impugned order shows that the penalty was imposed under Section 112(a) of the Act. The pre -condition of such penalty is that the person being penalised must have done or omitted to do action rendering such goods liable to confiscation. The penalty under Section 112 is the direct result of the confiscation of the goods under Section 111 of the Act. Prima facie where there is no action of confiscation, the question of penalty does not arise.