TaxTMI 
TaxTMI 
2019 (3) TMI 200
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....re were 70 packages packed in a consignment, which were packed in a container. On examination of the container containing the consignment, it was found that out of 70 consignments 6 packets are red sanders, which is prohibited item and cannot be exported. In these set of facts, proceedings were initiated against the appellant. Various statements were recorded. Thereafter, the show cause notice was issued to the appellant to confiscate the entire consignment and to take action against the appellant. The matter was adjudicated. The 6 packets of red sanders were absolutely confiscated. Remaining goods, namely, handicraft furniture of woods /metal were held liable for confiscation and allowed to redeem on redemption fine of Rs. 2.00 Lakhs. Pena....
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.... in this case goods were not confiscated under Section 113 of the Act, therefore, penalty under Section 114(iii) cannot be imposed. With regard to penalty is of Rs. 5.00 Lakhs imposed on the appellant, it is his submission that the value of red sanders is Rs. 1,38,000/- whereas penalty imposed of Rs. 5.00 Lakhs which is on higher side. With regard to absolute confiscation of red sanders, it is his submission that red sander has been loaded without the knowledge of the appellant by the staff of the appellant. Therefore, the red sanders cannot be confiscated, as the same has been purchased by the appellant under auction by Tamil Nadu Government and appellant has applied for a license on 13th February, 2014 for manufacturing certain items out ....
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..... Mazda Chemicals (supra) and Santosh Radio Products (supra). I have gone through both the decisions. In the case of Mazda Chemicals (supra), I find that from the facts, it is not coming out whether it is an export consignment or import consignment. Moreover, the case of the appellant in the said case was absolute confiscation of Soda Ash whereas in the Truck containing certain contravened items. But in that said case, the appellant did not sought the release of the contravened items and disowned the same. But in this case both red sander as well as handicraft items are owned by the appellant. Therefore, facts of the said case are not applicable to this case. Further, in that case of Santosh Radio Products (supra), the appellant was an impo....