The Delhi High Court upheld the penalty imposed on Container Corporation of India ( CONCOR ) for its role as a custodian of goods, which included branded liquor that was found in addition to the declared goods.
During an inspection an import by M/s Pico Trading Co., which declared items such as “steep glass bowl” and “deep cut glass bowl” in a Bill of Entry dated October 27, 2011, customs authorities discovered other undeclared branded goods, including branded liquor, valued significantly higher than the declared goods.
The court was informed that the container was placed under CONCOR’s custody after being sealed by customs officials. When later inspected, the seal was found to have been replaced, and the majority of the valuable undeclared goods had been pilfered, leaving only a small portion behind.
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The High Court upheld the penalty, in line with the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) ruling that CONCOR, as the custodian, was responsible for the safe custody of the goods under the Customs Act, 1962, and the Handling of Cargo in Customs Area Regulations (HCCAR), 2009.
The court dismissed CONCOR’s defence that it was not responsible for the pilferage since the goods were under the watch of the Central Industrial Security Force (CISF), stating that the custodian’s liability for the goods remained intact.
The Division Bench of Justice Yashwant Varma and Ravinder Dudeja specifically observed that CONCOR’s responsibility under Section 45(3) of the Customs Act and Regulation 6 of HCCAR, 2009, mandates that the custodian is liable to pay customs duty for any pilfered goods while under its custody.
It was also remarked that the replacement of the original customs seal without permission further indicated lapses in securing the goods.
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Thus, the court dismissed CONCOR’s appeal, upholding both the customs duty demand and the penalty imposed by the Tribunal.
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