TaxTMI 
TaxTMI 
2017 (9) TMI 1013
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.... specific intelligence that 'red sander logs' were being attempted to be exported. On the basis of the said intelligence, DRI recalled the container which was exported from Mundra port to Jebli Ali Port, U.A.E. When the container was examined after recall, on 24.10.2011, it was found that it contained 606 logs of red sander weighing 15.585 MTs. The goods were seized and further investigations were undertaken by DRI. Finally, show cause notice dated 16.10.12 was issued by DRI Ahmadabad which came to be adjudicated vide the impugned order, in which the 'red sander logs' were absolutely confiscated and penalties were imposed on various persons found involved in the attempted smuggling of red sanders which is a commodity prohibited for export. ....
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....No. GJ-18-T-1012 as per the specific request of the exporter conveyed to M/s. Max Shipping by Shri Narender Tarter. The container was received in Mundra Port, where the seals were verified and allowed to be exported. During the examination of the container by DRI, after recall from UAE, it was noticed that the seal on the container had been tempered with and painted over. The container was found to contain contraband. Upon conclusion of investigation, DRI concluded that the King pin of the fraud was one Shri Abdul Jaffar Sattar. The role played by Shri Sattar, as summarised by adjudicating authority in para 16.2 of the impugned order is as follows: "16.2 I find that the role played by Shri Abdul Jaffer Sattar of Chennai in the instant ca....
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....as also confirmed to be non-existing and fake. On scrutiny of the bank statement of Shri Abdul Jaffer (A/C No.05290100009717), obtained from the Bank of Baroda Rajaji Road, Chennai it was noticed that the said account was open on 17.11.2006 and during the period from 01.07.2011 to 24.12.2011 big transactions varying from Rs. 30,000/- to Rs. 5,00,000/- shown to have been deposited in his account on cash basis. A debit entry dated 30.7.2011 for Rs. 2,00,000/- was also appearing as withdrawals as a debit entry in respect of payment made to the exporter at Jodhpur through cheque. But the contact number and address so mentioned in the account statement was confirmed to be non-existing. He discharged the liability of payment of Rs. 4,75,000/- tow....
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....en submitted by Shri Ismail Khan that he was in no way concerned with arrangement of transport after handing over the cargo at ICD. It has further been submitted that he had no role to play in the export and can not be charged with abetment, since he was not aware of the contraband goods in the container. 7. Shri Ismail Khan, has filed the shipping bill for export of furniture through CHA. Without verifying the identify of Abdul Jaffer Sattar, he allowed Shri Sattar to control the export consignment and put him in touch with Narender Tatar, CHA. When the recalled container was examined, contraband goods were found as against the goods entered for export. Even though the DRI investigation has not established the extent of involvement of Shr....
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....ced the import cargo with the contraband goods. He has further held that M/s. Max Shipping cannot escape the vicarious liability for the conduct of their employees. The adjudicating authority has also held Shri S P Singh, MD and Naveeen Bohra, Operational Executive, responsible for their act of betrayal of trust placed by custodian, by permitting the third party to hold the export cargo which was replaced by contraband goods. Accordingly, he has held Shri S P Singh as well and Shri Navneet Bohra liable for penalty for abetting smuggling. 9. The submissions made on behalf of Max Shipping is that the goods were moved from ICD Jodhpur only after 'let export order' was given by Customs. On arrival of container at Gateway Port, the seals were ....
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...., as above, it is clear that M/s. Max Shipping has failed to safely transport the customs cleared container to the gateway port. M/s. Max Shipping along with Shri S P Singh and Shri Navneet Bohra, MD have handed over the cargo to unauthorised persons which has facilitated the smuggling of 'red sanders' out of the country. Hence, we are of the view that in the peculiar circumstances and facts of the present case, all the three persons are liable to penalty for abetting the smuggling of red sanders under section of 114 (i) of the Customs Act. Hence the penalties imposed are upheld. Pap Fast Movers, CHA and Narender Tatar, Director 11. M/s. Mehar Traders, the exporter, have entrusted the cargo to M/s. PAP Fast Movers, CHA through their Dire....