Ashim Kumar Banerjee, J. - (1.)What is meant by the word "chargeable" contained in section 116 of the Customs Act, 1962 (hereinafter referred to as the "said Act") ?
(2.)The above is the moot question involved in the present appeal.
(3.)Brief facts of the case : National Thermal Power Corporation Limited (hereinafter referred to as "NTPC") imported certain project equipments from abroad by a vessel belonging to India Steamship Co. Ltd., the respondent abovenamed. When the goods were unloaded at Calcutta Port there had been short landing of a small quantity of the total consignment. As per the surveyors report the entire consignment was off loaded from the vessel whereas as per the Port Trust report there had been short landing. NTPC got the actual quantity of the goods received by them released by payment of customs duty. The duty payable on the consignment was partially exempted under section 25 of the said Act. NTPC got the actual quantity of the goods released upon payment of actual duty payable on the goods after availing the exemption. The customs authority imposed a penalty upon the shipper being India Steamship Ltd. under section 116 of the said Act twice the duty which was payable on the said goods without taking into account the exemption. Before the Assessing Officer it was contended on behalf of the shipper that since the surveyor's report recorded landing of the entire consignment, the shipper was not liable for any penalty. As and by way of alternative submission it was contended that in case the first contention was rejected the authority could at best impose penalty twice than the actual duty payable on the goods short landed after taking into account the exemption.
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