Tribunal upholds penalty for illegal export of goods under EXIM Policy. Mis-declaration and smuggling involvement cited.

The Tribunal upheld the penalty of Rs. One lakh and absolute confiscation of goods imposed on the appellant for attempting to export prohibited goods in violation of the EXIM Policy 2009-2014. The appellant's involvement in mis-declaration of goods, misuse of Importer Exporter Code (IEC), and abetment in smuggling led to the dismissal of the appeal. The decision highlighted the appellant's defiance of the law, harm to customs revenue, and active role in facilitating fraudulent export activities.

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Issues involved:
1. Attempted export of prohibited goods in violation of EXIM Policy 2009-2014.
2. Mis-declaration of goods in shipping bill.
3. Misuse of Importer Exporter Code (IEC) for fraudulent export.
4. Allegations of abetment in smuggling prohibited goods.
5. Imposition of penalty and absolute confiscation of goods.

Analysis:

Issue 1: Attempted export of prohibited goods
The appellant, proprietor of M/s. S.J. International, attempted to export prohibited goods (wooden powder/dust, wooden flakes) in violation of the EXIM Policy 2009-2014. Customs confiscated the goods and imposed a penalty of Rs. One lakh on the appellant for smuggling.

Issue 2: Mis-declaration of goods
The consignment, declared as incense raw materials for export to Singapore, was found to contain prohibited goods upon physical examination. The mis-declaration of goods in the shipping bill led to further investigation by Customs Intelligence Unit.

Issue 3: Misuse of Importer Exporter Code (IEC)
The appellant admitted to lending his IEC to another party for export purposes in exchange for monetary consideration. He claimed ignorance about the contents of the consignment and stated that the export documents were prepared by a Customs House Agent arranged by the party using his IEC.

Issue 4: Allegations of abetment in smuggling
Investigations revealed that the appellant's IEC was misused by another party to export the prohibited goods. The appellant provided his rubber stamp and letterhead for preparing export documents, knowing that his IEC was being used fraudulently. The appellant's plea of innocence was rejected, and he was held accountable as an abettor in the smuggling attempt.

Issue 5: Imposition of penalty and confiscation
The adjudicating authority found the appellant guilty of abetting the export of prohibited goods and ordered the absolute confiscation of the goods along with a penalty of Rs. One lakh. The Tribunal upheld the penalty, considering the value of the confiscated goods, the fraudulent activity, and the appellant's role as an abettor in the smuggling attempt.

In conclusion, the Tribunal dismissed the appeal and confirmed the penalty imposed on the appellant, emphasizing that the appellant's actions were in defiance of the law and caused harm to customs revenue. The decision was based on the evidence of misuse of the IEC, mis-declaration of goods, and the appellant's involvement in facilitating the fraudulent export of prohibited goods.

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