TaxTMI 
TaxTMI 
2006 (4) TMI 454
X X X X Extracts X X X X
X X X X Extracts X X X X
....appellant M/s. Universal Traders, Mumbai filed 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 vol....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r invoiced to avoid custom duty at Dubai. Shri Mehmood Gulam Hussain Patni also admitted to taking part in the 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 cha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t consignment was Sandalwood Oil has not been proved inasmuch as the tests have not confirmed the consignment as of Sandalwood 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 redem....
X X X X Extracts X X X X
X X X X Extracts X X X X
....It is his submission that permission to redeem such offending goods would only encourage efforts to smuggle Sandalwood Oil. He, 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 specifi....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., discussed in details by the Tribunal in the case of Gauri Enterprises v. Commissioner of Customs, Pune [2002 (145) E.L.T. 706 (Tri. - Bang.)] 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as "Attar" and the Adjudicating Authority held that the goods are Sandalwood Oil and after confiscation given an option to redeem the goods on payment of fine. The contention of the 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. ....