Case: Mcleod and Company Vs. Collector of Customs, Calcutta

The Collector of Customs, purporting to act under Section 167(8) of the Sea Customs Act, imposed a penalty of Rs. 5, 00, 000/- on goods covered by Shipping Bills Nos. 8072, 2082, 2083, 2084, 2127 and 2085, and imposed a personal penalty on M/s. McLeod & Co. Ltd. of Rs. 7, 00, 000/-. In respect of goods covered by Shipping Bill No. 788, the Collector imposed a personal penalty of Rs. 5, 00, 000/- under Section 167(8) of the Sea Customs Act. He imposed another penalty of Rs. 1, 000/- under Section 167(37)(c) on M/s. McLeod & Co. Ltd. and a personal penalty of Rs. 500/- under Section 167(3). The Central Board of Excise & Customs reduced the penalty in respect of Shipping Bills Nos. 8072, 2084, 2127 and 2085 from Rs. 5, 00, 000/- to Rs. 4, 00, 000/- and reduced the personal penalty from Rs. 7, 00, 000/- to Rs. 3, 50, 000/-, and in respect of Shipping Bill No. 788 it reduced the personal penalty from Rs. 5, 00, 000/- to Rs. 50, 000/-. It confirmed the penalty under Section 167(37)(c) and vacated the order imposing personal penalty of Rs. 500/- under Section 167(3).

Court's reasoning:
3. We do not see any reason to accede to this request. This Court has considered the matter in some detail. It is true that there was difference of opinion and the judgment was by a majority of the Court but we will not be justified in lightly ignoring the judgment of this Court which has been given after full consideration of the merits of the dispute.