TaxTMI 
TaxTMI 
2006 (4) TMI 454
X X X X Extracts X X X X
X X X X Extracts X X X X
....led shipping Bill No. 5137775, dated 25th September, 2003 for exporting a consignment. The goods in ten drums was declared as 'Perfume Attar-Raat Rani'. The export price was declared around Rs. 1.4 lakhs. 3. Based on information that the consignment actually is Sandalwood Oil, the Customs authorities started investigation. The testing of sample in the customs laboratory confirmed the presence of Sandalwood Oil in the consignment. But purity could not be ascertained. Indian Institute of Technology of Mumbai stated as under about the samples :- The samples are analysed by Gas chromatography method on GC MS. The above results are based on area percent of Santalol (Sandalwood Oil) in the volatile matter that can be analyzed on GC". The p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e preparation of the export consignment. 5. Based on the prices indicated by forest authorities, the consignment was valued about Rs. 25 lakhs against the declared value of Rs. 1.4 lakhs. Thus, misdeclared of value was also found. 6. Export of Sandalwood Oil is not permitted except under special licence. This licence is given only to specified categories. Since the appellants were found to violate the export law as well as under invoicing of the consignment, proceedings were initiated proposing to confiscate the goods and to penalize the present appellants. In the adjudication proceedings, the appellant denied all charges and sought permission to take the goods back. The Commissioner rejected the appellant's explanation and conf....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Oil. It is the contention of the learned Counsel that the presence of Sandalwood Oil in the consignment did not mean that the consignment was of Sandalwood Oil. Instead, it only means that perfume has been made by use of Sandalwood Oil. It is being pointed out that there is no prohibition on export of perfumes made by use of Sandalwood Oil. Purity also is very low. It is being submitted that since the case of the department has not been established, the consignment is required to be returned. It is also being contended that, in any event, the appellants should be allowed to redeem the consignment on payment of redemption fine. 8. As against the aforesaid contentions on behalf of the appellants, learned SDR submits that the case of m....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... has therefore, submitted that the impugned order is required to be confirmed in toto. 9. Evidence on record clearly brings out that the consignment is not the declared item. The consignment was declared as of 'attar'. But it is not 'attar' at all. It was not produced or bought as 'attar'. It was prepared by mixing cheap oils into Sandalwood Oil. Therefore, the finding of the Commissioner that goods have been misdeclared and are liable to confiscation is sound. The evidence of the appellants themselves during investigation was that they had misdeclared the goods in regard to description and value for specific consideration. Description, because Sandalwood Oil is not allowed to be exported and value, so as to evade custom duty at Dubai....
X X X X Extracts X X X X
X X X X Extracts X X X X
....] and as observed that resort to absolute confiscation should be an exception and not the rule. As such, I am of the view that the appellant should be given an option to redeem the goods on payment of fine, for which purposes I remand the matter to the Commissioner for fixing the quantum of redemption fine. Sd/- Archana Wadhwa Member (J) DIFFERENCE OF OPINION 11. Whether the appeals are required to be rejected in their totality as held, by ld. Member (Technical) or the matter should be remanded for the limited purpose of fixing of redemption fine in respect of confiscated goods, as observed by Member (Judicial). 12. The following difference of opinion is referred to the 3rd Member. Whether the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Appellant is that as per the provisions of Section 125 of Customs Act, the Appellants are entitled to redeem the goods on payment of redemption fine. 14. The contention of the Revenue is that both the Hon'ble Members held that the Sandalwood Oil requires a special licence for export, therefore, the issue whether the Sandalwood Oil can be exported without any restriction or it is prohibited item cannot be gone into at this stage. The contention is that as the goods were misdeclared and were highly under value, therefore, these were rightly confiscated. 15. As per the provisions of Section 125 of Customs Act whenever confiscation of any goods is authorized by this Act, the Adjudicating Authority may, in the case of any goods, th....