{"id":5445,"date":"2025-08-21T18:31:41","date_gmt":"2025-08-21T13:01:41","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=5445"},"modified":"2025-08-22T12:30:36","modified_gmt":"2025-08-22T07:00:36","slug":"sc-customs-cargo-service-provider-liable-for-loss-of-goods","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/sc-customs-cargo-service-provider-liable-for-loss-of-goods","title":{"rendered":"Customs Cargo Service Provider Liable for Loss of Goods | SC"},"content":{"rendered":"<pre>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/customs\/101010000000402294\/customs-cargo-service-provider-is-under-a-statutory-obligation-to-indemnify-loss-of-goods-kept-in-a-sealed-container-in-its-safe-custody-sc\"><span class=\"NormalTextRun SCXW225096354 BCX0\" data-ccp-parastyle=\"Body-All Documents\" data-ccp-parastyle-defn=\"{&quot;ObjectId&quot;:&quot;f54e3151-7552-5563-bc14-dd1598e94375|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[469775450,&quot;Body-All Documents&quot;,201340122,&quot;2&quot;,134234082,&quot;true&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocuments&quot;,335572020,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777844,&quot;Book Antiqua&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,335559740,&quot;280&quot;,201341983,&quot;1&quot;,335559739,&quot;0&quot;,335551550,&quot;6&quot;,335551620,&quot;6&quot;,469777929,&quot;Body-All Documents Char&quot;,201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777843,&quot;Calibri&quot;,201341986,&quot;1&quot;,268442635,&quot;24&quot;]}\" data-ccp-parastyle-linked-defn=\"{&quot;ObjectId&quot;:&quot;d1cb5994-2cf1-5883-8af4-faa182bd9769|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777843,&quot;Calibri&quot;,469777844,&quot;Book Antiqua&quot;,201341986,&quot;1&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,268442635,&quot;24&quot;,469775450,&quot;Body-All Documents Char&quot;,201340122,&quot;1&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocumentsChar&quot;,335572020,&quot;1&quot;,134231262,&quot;true&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,469777929,&quot;Body-All Documents&quot;,469778324,&quot;Default Paragraph Font&quot;]}\">Container Corporation of India Ltd Versus Commissioner of Customs, Nhava Sheva<\/span><span class=\"NormalTextRun SCXW225096354 BCX0\" data-ccp-parastyle=\"Body-All Documents\"> (2025) 33 Centax 71 (S.C.)<\/span><\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong><span id=\"111170000000114774\">Pamidighantam Sri Narasimha<\/span><\/strong>\u00a0and\u00a0<strong><span id=\"111170000000123504\">Joymalya Bagchi<\/span><\/strong>, JJ.<\/li>\n<li><i>S\/Shri\u00a0<span id=\"111170000000042652\">Rajiv Shakdher<\/span>, Sr. Adv.,\u00a0<strong><span id=\"111170000000074708\">Ms. Lalit Mohini Bhat<\/span><\/strong>,\u00a0<strong><span id=\"111170000000123635\">Siddarth Agarwal<\/span><\/strong>,\u00a0<strong><span id=\"111170000000167028\">Karan Khaitani<\/span><\/strong>,\u00a0<strong><span id=\"111170000000164731\">Jonathan Ivan Rajan<\/span><\/strong>, Advs. and\u00a0<strong><span id=\"111170000000165727\">Ms. Hetu Arora Sethi<\/span><\/strong>, AOR, for the Petitioner<\/i><\/li>\n<li><i><strong>S\/Shri\u00a0<span id=\"111170000000044398\">S. Dwarakanath<\/span><\/strong>, A.S.G.,\u00a0<strong><span id=\"111170000000107498\">Udai Khanna<\/span><\/strong>,\u00a0<strong><span id=\"111170000000064599\">Anmol Chandan<\/span><\/strong>,\u00a0<strong><span id=\"111170000000124378\">Prashant Singh-II<\/span><\/strong>,\u00a0<strong><span id=\"111170000000155569\">Ms. Misha Kumar<\/span><\/strong>,\u00a0<strong><span id=\"111170000000164515\">Ms. Satya Jha<\/span><\/strong>, Advs. and\u00a0<strong><span id=\"111170000000099790\">Gurmeet Singh Makker<\/span><\/strong>, AOR, for the Respondent.<\/i><\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p><span class=\"TextRun SCXW167721816 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW167721816 BCX0\" data-ccp-parastyle=\"Body-All Documents\" data-ccp-parastyle-defn=\"{&quot;ObjectId&quot;:&quot;f54e3151-7552-5563-bc14-dd1598e94375|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[469775450,&quot;Body-All Documents&quot;,201340122,&quot;2&quot;,134234082,&quot;true&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocuments&quot;,335572020,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777844,&quot;Book Antiqua&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,335559740,&quot;280&quot;,201341983,&quot;1&quot;,335559739,&quot;0&quot;,335551550,&quot;6&quot;,335551620,&quot;6&quot;,469777929,&quot;Body-All Documents Char&quot;,201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777843,&quot;Calibri&quot;,201341986,&quot;1&quot;,268442635,&quot;24&quot;]}\" data-ccp-parastyle-linked-defn=\"{&quot;ObjectId&quot;:&quot;d1cb5994-2cf1-5883-8af4-faa182bd9769|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777843,&quot;Calibri&quot;,469777844,&quot;Book Antiqua&quot;,201341986,&quot;1&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,268442635,&quot;24&quot;,469775450,&quot;Body-All Documents Char&quot;,201340122,&quot;1&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocumentsChar&quot;,335572020,&quot;1&quot;,134231262,&quot;true&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,469777929,&quot;Body-All Documents&quot;,469778324,&quot;Default Paragraph Font&quot;]}\">The appellant, acting as a Customs Cargo Service (CFS) provider, was entrusted with the safe custody of a sealed container containing goods declared as stainless steel household articles. During the period of custody, the container was tampered with, and prohibited goods, namely Red Sanders, which had been illegally exported in place of the declared goods, were found to have been stolen. A panchanama recorded the seizure and storage of the container. The High Court held that the CFS was under a statutory obligation under Regulation 5(6) of the Handling of Cargo in Customs Areas Regulations, 2009 to indemnify the loss of goods that occurred due to theft while in its custody, notwithstanding that the exporter was facing criminal proceedings. Further, the High Court found that the appellant had breached its responsibilities under Regulations 6(1)(a), (b), (f), (i), and (q) of the same Regulations for failing to adequately discharge its duties in safeguarding the goods. The matter was accordingly placed before the Supreme Court via Special Leave Petition (SLP).<\/span><\/span><span class=\"EOP SCXW167721816 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:280}\">\u00a0<\/span><\/p>\n<h2><i>High Court Held<\/i><\/h2>\n<p><span class=\"TextRun SCXW258976803 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW258976803 BCX0\" data-ccp-parastyle=\"Body-All Documents\" data-ccp-parastyle-defn=\"{&quot;ObjectId&quot;:&quot;f54e3151-7552-5563-bc14-dd1598e94375|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[469775450,&quot;Body-All Documents&quot;,201340122,&quot;2&quot;,134234082,&quot;true&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocuments&quot;,335572020,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777844,&quot;Book Antiqua&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,335559740,&quot;280&quot;,201341983,&quot;1&quot;,335559739,&quot;0&quot;,335551550,&quot;6&quot;,335551620,&quot;6&quot;,469777929,&quot;Body-All Documents Char&quot;,201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777843,&quot;Calibri&quot;,201341986,&quot;1&quot;,268442635,&quot;24&quot;]}\" data-ccp-parastyle-linked-defn=\"{&quot;ObjectId&quot;:&quot;d1cb5994-2cf1-5883-8af4-faa182bd9769|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777843,&quot;Calibri&quot;,469777844,&quot;Book Antiqua&quot;,201341986,&quot;1&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,268442635,&quot;24&quot;,469775450,&quot;Body-All Documents Char&quot;,201340122,&quot;1&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocumentsChar&quot;,335572020,&quot;1&quot;,134231262,&quot;true&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,469777929,&quot;Body-All Documents&quot;,469778324,&quot;Default Paragraph Font&quot;]}\">The Hon\u2019ble Supreme Court held that there was no reason to interfere with the judgment of the High Court. The Court observed that the statutory obligations imposed under Regulation 5 read with Regulation 6 of the Handling of Cargo in Customs Areas Regulations, 2009, and Sections 45 and 141 of the Customs Act, 1962, clearly required the CFS to indemnify losses arising from theft of goods kept in its safe custody. The Supreme Court upheld that the breach of duties by the CFS justified invocation of the relevant provisions and dismissal of the SLP.<\/span><\/span><span class=\"EOP SCXW258976803 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:280}\">\u00a0<\/span><\/p>\n<h2>List of Cases Reviewed<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/customs\/101010000000402294\/customs-cargo-service-provider-is-under-a-statutory-obligation-to-indemnify-loss-of-goods-kept-in-a-sealed-container-in-its-safe-custody-sc\">Container Corporation of India Ltd. v. Commissioner<\/a> \u2014\u00a0(2023) 13 Centax 205 (Bom.)<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Container Corporation of India Ltd Versus Commissioner of Customs, Nhava&hellip;<\/p>\n","protected":false},"author":10,"featured_media":5497,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,177,47],"tags":[],"class_list":["post-5445","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs","category-customs-news","category-custom-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Customs Cargo Service Provider Liable for Loss of Goods | SC<\/title>\n<meta name=\"description\" content=\"Supreme Court held that a Customs Cargo Service (CFS) must indemnify losses from theft under the Customs Act and Handling of Cargo 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