Paradip Port Trust Vs Commissioner of Central Excise (Orissa High Court)
The Orissa High Court heard an appeal filed by Paradip Port Trust (PPT) against the order of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata, which had upheld the confirmation of customs duty of ₹17,41,843 along with interest and equivalent penalty under Sections 114A and 117 of the Customs Act, 1962. The substantial questions before the Court were whether PPT was liable to pay customs duty on imported cargo covered by Bills of Entry but not cleared by the importer, and, if so, whether penalty under Section 114A read with Section 117 was sustainable.
The imported consignment of LAM Coke was discharged at Paradip Port in June 1999. While the importer cleared a substantial portion of the cargo, the balance quantity remained uncleared. After the importer sought an extension of time, additional Bills of Entry were processed. Customs duty was paid only for part of the remaining cargo, whereas duty on 1001.5 MT remained unpaid. The importer subsequently informed the Customs Department that the goods had been washed away in the super cyclone that struck the Paradip area on 29 October 1999. Nearly three years later, the Customs Department issued a show cause notice to PPT seeking recovery of customs duty under Section 45(3) of the Customs Act on the ground that the goods had not been accounted for.
