AI Drafter 
TaxTMI 
TaxTMI 
2017 (3) TMI 407
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....bered as No.TN 28 AA 5031 without existence of owner thereof, they transported red sanders which was intercepted by investigation on 01.12.2011. Export of red sander which is prohibited goods was attempted to be exported from Chennai port. Such attempt was made in violation of section 11 (1) of the Foreign Trade (Development and Regulation) Act, 1992 and sections 2(33), 2(39) Customs Act 1962 for which those were seized and confiscated and penalty under section 114(i) and 114AA of Customs Act 1962 was levied on the appellant finding appellant was a conduit in the attempted export. 3. According to the Adjudicating Authority, The appellant Shri. R. DanieI raj, of M/s. Jay Yess Agencies, Tuticorin along with Shri. K. Thiyagarajan and Shri. L. Mariappan, Proprietor, Sea Angel Logistics Tuticorin formed the racket of smugglers of red sander. Mariappan was the mastermind of the racket attempted to export red sander A Learned Authority noticed that they were all directly, consciously and intimately involved and abetted the smuggling. The Custom House Agent and Freight Forwarders had also hand in glove with the smuggling racket who were also conscious of the smuggling activity in respec....
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.... be treated as offender or abettor to the offence. Accordingly Adjudication against him shall not sustain. 5.1 Revenue on the other hand placing a date chart with the history of the case as follows submitted that the appellant was consciously involved in the attempted export of red sanders and was also intimately connected with such offence defrauding customs. Chain of Evidence from Origin of Goods till interception :   S. No Dated & Time Sequence of Event 1 1-12-2011 @ 2140 Hrs Information recorded (DRI-1): About 10 MTS of Red sanders are concealed in one 20' ft container MEDU1401485 under SB No. 6446455/ Dt 29-11-11filed by Exporter 'Shiva Tex Yarn, Coimbatore'. Cargo meant for Dubai and the Container seal and documents are forged. Declared cargo is 'Cotton Grey Sheetings'. Customs Clearance undertaken by M/s. Jayes Agencies and the Container is inside Tuticorin port for export purpose. If you examine the Container, you can seize the contraband Red Sanders (page 54 of file) 2 2330 Hrs on 1-12-2011 to 300 Hrs on 2-12-2011 Based on the information, the Officers attached to SIIB, CH, Tuticorin. intercepted one lorry wit....
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....and that he was completed cheated by the exporter directly 8 2-12-2011 Hrs to 1530 Hrs Search by Preventive Unit, Customs Division, Tuticorin in the business premises of M/s. Sea Angel Logisitcs, Tuticorin. Taken copy of print out of E-mail correspondence between Rajesh Gupta & T. Mariappan found in the e-mail id [email protected] (page 159 to 174 of the file 9. 2-12-2011 1030 Hrs to 1230 Hrs Search by Preventive Unit, Customs Division, Tuticorin in the business premises of M/s, Jay Yess Agencies, CHA, Tuticorin and seized exporter copy of SB and other export documents (page 176 to 193 of the file) 10 2-12-2011 Residential premises of Ahamed Rabi, Illayangudi Pudur was searched by Divisional Preventive Unit, Customs Division and informed that no incriminating documents were found. Informed by Ramnad Customs officers that Rabi is residing rented house (damaged one). Further enquiry by the Customs officers reveal that the house is rented one and that he is motor mechanic attending heavy vehicle but without any workshop (fax copy of report received on 5-12-2011 in CH, Tuticorin Page 198 of the file) 11 2-12-2011 Based on the direction f....
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....ntained at the RTO office. Then proceeded along with officers from CIU, Customs Hqrs., Trichy, and found Kumerasan's house, an old tiled house, locked and enquired about his whereabouts from his neighbours but in vain. Then the officers requested the local people to inform him about the arrival of officers to his house and asked him to come to Custom House, Tuticorin with regard to enquiry about the attempted export of Red Sanders at Tuticorin port and his role in that attempt. Then proceeded to M/s Kannitheivam Automobile Workshop on the Madurai Ring Road and found the shop closed for the day owing to strike by transport workers over the Mullaiperiyar Dam issue. The owner of the shop Shri. Moorthy informed the officers that he had sent two of his workers to carry out repair work of the lorry TN28AA 5031 at about 18.00 hrs on 30.11.2011 when the lorry was stranded somewhere near Varichiyoor (Madurai-Sivagangai Road). As the repair work could not be completed during the night, his workers returned leaving behind the lorry at the same place. Then the next clay, the lorry was somehow brought to Madurai by its driver. The repair work was attended to and completed at about 15.00 ....
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.... Report from Commissioner of Central Excise, Coimbatore informing that the unit Shiva Tex Yarn falls under Range IVD and not Range IVE as found in export documents and also stated that officers name are also wrong. (page 305 to 310) 9-2-2012 Officers attached to CPU, Thoncli visited 'the house of Rabi at Illyangudi pudhur to serve summons and Rabi was not in house, summons was pasted in his house with two independent witnesses. Then visited the house of Kumerasan at Periyakannanoor, Sivagangai and his was locked. Summons pasted on this house with two independent witnesses (report received on 10-2-2012) (Page 319 to 323 of file) 23-02-2012 Lr addressed to AC. Customs Division, Cuddolore to depute officer to RTO North West Chennai to pursue the case 29-02-2012 Lr to AD, DRI, Chennai sending the role played by each persons in the seizure of Red sanders along with their Cellphone numbers for further investigation (page 336 & 337) 1-3-2012 Lr from Shiva Tex Yarn sending copy of FIR filed with Police department for misusing their company name for attempted export of Red Sanders (page 338 to 340) 29-03-201....
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....ay Yess Agencies was CHA. He was also one of the conduits of red sander smuggling and involved in attempted export with the racket of smugglers. (vi) The appellant Shri. R. Daniel Raj, filed export documents produced by the unauthorised forwarding agent M/s. Sea Angel Logistics, Tuticorin without verifying the veracity of documents and credibility of the exporter. 6.1 Revenue further submitted that the appellant was quite aware of the attempt to export red sanders in the 20 feet container No. MDU 1401485 transported by truck bearing false registration No. TN 28AA 5031 displaying the name "Shiva Tex Yarn Pvt. Ltd", without any owner thereof on record of the office of RTO, Chennai nor registered thereat. 6.2 Investigation revealed that the stuffing seal on the goods and the container as well as documents accompanying goods were fabricated. Seal of Coimbatore IVE Range was made by the racket although no such Range was existing. The appellant as a CHA is expected to be aware of existence of the Range office. He should have thoroughly verified the documents when that contained seal of a non-existing Range. Appellant failed to enquire truth of the transaction when Mariappan of M....
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....was found by investigation from the records of RTO, Chennai. The offending truck was carrying 9.89 MTS of red sanders of value of Rs. 49.45 lakhs in 20 feet container No. MADU 1401485 attempted to be exported in terms of Shipping Bill No. 6446455 date 29.11.2011. IE Code 39790266981 belonging to M/s. Shiva Tex Yarn was used by the smuggling racket to export the offending goods. Such misuse of IE code was confirmed by Shri Shankarraman, General Manager, of that concern in his statement dated 7.12.2011. There was no rebuttal to such fact by appellant. So also appellant failed to contradict the statement of the General Manager that neither the offending truck came to the factory of M/s. Shiva Tex Yarn nor any goods were loaded into that truck from the factory of that concern. M/s. Shiva Tex Yarn was not the exporter of the goods declared in the Shipping Bills. Red sander found from the container was attempted to be exported, falsely declaring that as 100% grey sheeting. 8.2 The red sander found from the container were loaded in Madurai in the offending truck and that belonged to one Rajesh Gupta who provided the container transported through a lorry to one Mariappan. Mariappan was ....