2026-VIL-929-CESTAT-KOL-CU
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CUSTOMS CESTAT Cases

Customs - Penalty under Section 112(a) of the Customs Act, 1962 for non-declaration of retained onboard cargo - Appellant-steamer agent discovered that it retained onboard from a previous export voyage and had not been declared in the manifest. Upon learning of the retained onboard cargo from its principals, the appellant approached the Customs authorities seeking amendment of the manifest under Section 30(3) of the Customs Act. The master of the vessel subsequently admitted that he had not declared the retained onboard cargo in the boarding documents and accepted such omission as his own mistake - Whether penalty under Section 112(a) of the Customs Act, 1962 can be imposed on a steamer agent for non-declaration of retained onboard cargo – HELD - The penalty under Section 112(a) for aiding and abetting cannot be imposed in the absence of culpable conduct and mens rea. Mere procedural lapse, inadvertent omission or communication failure does not ipso facto attract penal consequences under this section. The role of a steamer agent is to declare goods as informed by the master of the vessel in the manifest. The master himself admitted that the omission to declare the retained onboard cargo was his mistake, and at no point did he allege any collusion, knowledge, intention or deliberate acts on the part of the steamer agent. The steamer agent's immediate action in filing an amendment application upon receiving confirmation of the retained onboard cargo demonstrates bona fide conduct and lack of fraudulent intent – Further, the retained onboard cargo never acquired the legal character of imported goods as it remained continuously onboard the vessel, was never unloaded in India, no B/E was ever filed for it, and it was ultimately discharged at foreign ports - The filing full and correct manifest primarily rests upon the master of the vessel and other agencies cannot be held liable for penal consequences where lapses arise from communication failure without fraudulent intent - The penalty imposed under Section 112(a) is set aside and the appeal is allowed
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