2017 (6) TMI 1096

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....ainst the appellant is that, he had master minded the smuggling of 538 red sander logs which had an approximate value of Rs. 80 Lakhs in the grey market. 2.1.The appellant was, evidently, the kingpin, who had arranged the premises for storing the aforementioned red sander logs and to effectuate this purpose had handed over a sum, equivalent of Rs. 10 Lakhs to one, Mr.M.Badhusha. It appears that Mr.Badhusha had in turn, handed over, out of the said amount, a sum of Rs. 3.5 Lakhs to, one, Mr.Surendra Kumar, the owner of the premises where the red sander logs were stored. 2.2.The appellant had evidently executed a lease for the subject premises in the name of one Mr.R.Pupothi Raja, Proprietor of R.P.R. Packers and Movers, having his Offi....

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.... to confiscate 538 nos. of red sander logs, weighing 13.590 metric tons and, as indicated above, are valued at Rs. 80 Lakhs approximately. 4.2.Furthermore, penalty in the sum of Rs. 5.7 Lakhs was also imposed and, a sum of Rs. 3.50 Lakhs, which was deposited by Mr.Surendra Kumar, which he had received, in turn, as indicated above, from Mr.Badhusha, was adjusted towards the penalty imposed on the appellant. 5.Mr.Satish Sundar, who appears for the appellant, says that there are substantial questions of law, which arise for consideration. 5.1.According to the learned counsel, the questions of law veer around the interpretation of the provisions of Section 113(d) of the Customs Act, 1962 (in short, the Act). 5.2.It is the learned co....

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....Act, which does not emanate from the order of the Tribunal. [See CIT Vs. S.S.Navigation Co. Ltd., AIR 1961 SC 1633]. 8.3.This apart, according to us, in any event, the submission made by the learned counsel for the appellant, in the given facts and circumstances of the case, is unsustainable, in view of the fact that there are, on record, statements made both by Mr.M.Badhusha and the appellant under Section 108 of the Act, which, clearly show that an attempt was made to export the subject goods, outside the country, via Cochin Port. 8.4.It is not disputed by the appellant, before us, that red sander logs are a prohibited items. 8.5.The fine distinction, sought to be drawn by the learned counsel for the appellant, between preparatio....

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....r has been made in the statements of the appellant as well as Mr.Badhusha. 8.7.Therefore, it is not, as if, that there was only preparation i.e., a desire to smuggle without an attempt being made, as is sought to be contended by the learned counsel for the appellant. 8.8.Preparation, in our view, is a state of mind, which obtains prior to its manifestation in the form of concrete steps, which are taken to give shape to a plan which germinates in the mind, in the first instance. Once a concrete shape is given to a plan in the form of steps taken on ground, clearly an attempt to smuggle would have been made, as was the case in the instant matter. 8.9. The submission of Mr.Sundar that, since, the subject goods (i.e., red sander) was n....