2016 (9) TMI 274 - AT - Customs

Tribunal upholds penalties for illegal export of red sanders by CHA firm & employee

M/s. K.D. Thakker and M/s. B.M. Jagdale Versus Commissioner of Customs (Import) JNCH, Sheva

M/s. K.D. Thakker and M/s. B.M. Jagdale Versus Commissioner of Customs (Import) JNCH, Sheva - TMI Issues:1. Alleged involvement of CHA firm and employee in illegal export of red sanders without proper authorization.2. Imposition of penalty under Section 114(i) of the Customs Act, 1962.3. Dispute regarding the knowledge and involvement of the CHA firm and its employee in the illegal export.Analysis:1. The case involved the appellants, a CHA firm, and an employee who were accused of being involved in the illegal export of red sanders without proper authorization. The export documents were found to be forged, and the appellants failed to obtain any authorization from the exporting firm, leading to the imposition of penalties under Section 114(i) of the Customs Act, 1962. The appellants were alleged to have facilitated the smuggling of red sanders for illegal export by not following regulations and dealing with unscrupulous individuals for export clearance.2. The appellant's counsel argued that the appellants, as CHA, were not aware of the actual contents of the container or the authenticity of the documents. It was contended that the appellants were not directly or indirectly involved in the illegal export of red sanders and that the penalties imposed were unjustified. The counsel cited various judgments to support the argument that lack of knowledge about the contents and authenticity of documents absolved the appellants from liability.3. On the other hand, the Revenue representative reiterated that the appellants were indeed involved in the illegal export based on the investigation findings. It was highlighted that the employee of the CHA firm received documents from an unauthorized person, indicating a deliberate avoidance of proper authorization. The representative relied on legal precedents to support the contention that the penalties imposed were justified given the circumstances of the case.4. The tribunal carefully considered the arguments presented by both sides and found that the appellants were indeed involved in the illegal export of red sanders. The lack of proper authorization, receipt of documents from unauthorized sources, and failure to verify the authenticity of the exporting firm established the guilt of the appellants. The tribunal upheld the penalties imposed under Section 114(i) of the Customs Act, 1962, concluding that the appellants acted as conduits for the smuggling of red sanders. The appeals were dismissed, and the impugned order was upheld, emphasizing the intentional disregard of regulations by the CHA firm and its employee in facilitating the illegal export.