This disclosure relates generally to character detection and recognition, and more particularly to a method and system for container code recognition via Spatial Transformer Networks and Connected Component. The method comprises capturing an image of a container using an image capture device which is pre-processed using an image preprocessing module. The method further comprises extracting and filtering region proposals from the pre-processed image using a region extraction module to generate regrouped region proposals. The next step comprises classifying the regrouped region proposals into characters by implementing trained Spatial Transformation Network to generate a valid group of region proposal with more than one chunk of container identification code using a classification module, and lastly a sequence for the valid group of region proposal is generated and the generated sequence is mapped to a predefined standard container identification code to determine a container identification code, wherein the predefined standard identification code comprises chunks of characters in a predefined pattern.