Commissioner of Customs Vs Msc Agency India Pvt. Ltd (Madras High Court)
Summary: The Madras High Court allowed the Revenue’s Civil Miscellaneous Appeal against the CESTAT Chennai order dated 23.10.2013, which had set aside the Commissioner of Customs’ order dated 27.11.2012. The case concerned 150 containers declared in the Import General Manifest (IGM) and Bills of Lading as containing “shredded steel scrap” and “Heavy Melting Steel Scrap”. On inspection by the Docks Intelligence Unit, the declared goods were found in negligible quantities and the containers largely contained broken roof tiles, with the actual unloaded weight averaging only 12.5% of the declared weight. The Commissioner had imposed a penalty of Rs.90,15,924/- on MSC Agency India Pvt. Ltd. under Section 116 of the Customs Act for failure to make a true IGM declaration and satisfactorily account for the deficiency. The High Court held, relying upon British Airways PLC Vs. Union of India and Caravel Logistics Private Limited Vs. The Joint Secretary [RA], that the steamer agent which lodged the IGM and acted as agent of the person-in-charge could be liable under Section 116. The Court rejected reliance on the Bills of Lading stipulations and found the CESTAT’s application of Shaw Wallace unsustainable. The appeal was allowed, the CESTAT order was set aside, the Commissioner’s order-in-original was restored, and the respondent was directed to comply within twelve weeks.
