2008 (2) TMI 709

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....are in connection with the absolute confiscation of 30.212 MTs of red sanders logs ordered under Section 113(d) of the Act. Shipping Bill No. 1915943 dated. 9-10-2004 had been filed in the name of M/s. Sri Lakshmi Mining Industries for export of goods declared as "Natural Granite Chips", to Malaysia. It was signed by Shri R. Elangovan, Executive of the CHA. It was Shri S. Chinnikrishnan who got the Shipping Bills signed by the CHA, and attended to the Customs clearance of the export. The declared goods were stuffed in two containers at Numbal CFS and the containers were sealed by the Customs authorities. Acting upon intelligence regarding smuggling of red sanders out of India in the guise of export of 'natural granite chips', the Customs au....

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....pellants, i.e., abetment of Shri Indirakumar's attempt to smuggle the prohibited commodity (red sanders) out of the country in the guise of export of 'natural granite chips'. The declared item (granite chips) was stuffed in the two containers at the CFS and the containers were sealed by the proper officer of Customs. The declarations in the Shipping Bill were accepted and "let-export" order given, pursuant to which the consignment was taken to CCTL for shipment. A pertinent fact noted by the Commissioner is that the swapping of goods (red sanders for granite chips) in the containers had taken place in transit from the CFS to CCTL. The question to be considered in this case is whether the CHA and Shri Chinnikrishnan had anything to do with t....

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.... under the above Shipping Bill. Any mens rea has not been shown to have been present on the part of the CHA in relation to the confiscated goods. Hence it cannot be said that the CHA, by any commission or omission, rendered the goods liable to confiscation under Section 113 or that they abetted any such commission or omission of anybody else in relation to the goods. Consequently, the penalties imposed on them under Section 114 of the Customs Act cannot be sustained. This does not mean that no action would lie against the CHA. On the facts of this case, it is open to the department to bring them to book if it can be established that they acted in violation of the provisions of the Customs House Agents Licensing Regulations (CHALR), 2004. I ....