Tribunal upholds Rs. 27 crore confiscation and Rs. 50 lakh penalty for illegal export. Pre-deposit waiver partially granted.

The Tribunal upheld the confiscation of goods valued at Rs. 27 crores and imposed a penalty of Rs. 50 lakhs under Section 112 of the Customs Act, 1962 for attempting to export restricted goods without the necessary license. The appellant's request for a waiver of the pre-deposit of penalty was partially granted, with a directive to deposit Rs. 25 lakhs within 8 weeks for appeal admission. The Tribunal emphasized the seriousness of the offence and clarified that confiscated goods cannot be used as security for penalties, allowing a stay on penalty collection during the appeal process.

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Issues involved: Attempted export of restricted goods without proper license, confiscation of goods, imposition of penalty under Section 112 of the Customs Act, 1962, waiver of pre-deposit of penalty for admission of appeal.

Summary:

Attempted Export of Restricted Goods: The case involved an attempt to export Muriate of Potash declared as "OWC (Drilling Chemical Additives)" without the required license from DGFT. Customs intercepted the goods and confirmed them to be Muriate of Potash, a restricted item for export.

Confiscation and Penalty: The goods, valued at Rs. 27 crores, were absolutely confiscated, and a penalty of Rs. 50 lakhs was imposed on the appellant under Section 112 of the Customs Act, 1962. The appellant sought a waiver of the pre-deposit of penalty for admission of appeal, citing that the goods were already with the Department.

Arguments and Decision: The learned DR opposed the waiver, highlighting the importance of the goods as fertilizers for the country's farmers. The Tribunal considered the seriousness of the offence and ruled that once goods are confiscated, they belong to the Government and cannot serve as security for the penalty. The Tribunal directed the appellant to deposit Rs. 25 lakhs within 8 weeks for admission of the appeal. The pre-deposit of the balance penalty was waived, and its collection was stayed during the appeal process.

Conclusion: The Tribunal upheld the confiscation of the goods and the imposition of the penalty under the Customs Act, 1962. It required a partial pre-deposit of the penalty for admission of the appeal, emphasizing the gravity of the offence committed.

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