Tribunal Rules Section 113 Inapplicable to Exported Goods; Confiscation and Penalty u/s 114 Deemed Unlawful.

The Tribunal determined that Section 113 of the Customs Act is inapplicable to goods already exported, as it pertains to goods "attempted to be exported." Consequently, the confiscation and penalty imposed under Section 114 for misdeclaration of exported goods were deemed unlawful. The Tribunal set aside the Commissioner's order, allowing the assessee's appeal and dismissing the Revenue's appeal for a higher penalty.

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Issues involved: Appeals against penalty imposed under Section 114 of the Customs Act for misdeclaration of goods and export price.

Summary:
1. The appeals pertain to exports of 'Cassia Oil' declared by the assessee through Tuticorin Port to fulfill export obligation for 'Cassia' imports under DEEC scheme. Department suspected misdeclaration, leading to a penalty imposed under Section 114.

2. Assessee challenges the order of confiscation and penalty, arguing that exported goods were not liable for confiscation under Section 113. Revenue seeks higher penalty, contending the gravity of misdeclaration warrants more than the imposed Rs. 1 lakh penalty.

3. Assessee's counsel argues that since import dispute was settled, the penalty on export goods is unjustified. Revenue asserts misdeclaration admission during settlement justifies penalty. Tribunal notes Section 113 pertains to goods "attempted to be exported," not already exported, rendering the confiscation order invalid and penalty unsustainable.

4. Tribunal finds Section 113 inapplicable to goods already exported, as it focuses on goods "attempted to be exported." Consequently, confiscation and penalty on exported goods are deemed unlawful. The Commissioner's order is set aside, allowing the assessee's appeal, while dismissing the Revenue's appeal for increased penalty.

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