TaxTMI 
TaxTMI 
2023 (2) TMI 490
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.... that "Muriate of Potash", a restricted item for export, is smuggled out of India in the guise of 'Industrial Salt', the Officers of Custom House, Chennai detained an export consignment of 150 MTs of cargo declared as 'Industrial Salt' on 24.07.2009. The cargo was packed in polyethylene bags of 50 gms each and were lying in the CFS area. The consignment was covered under 6 Shipping Bills and was destined to Vietnam and Malaysia. The goods were examined in the presence of two independent witnesses, CHA, representative of exporter and the representative of CFS. On a reasonable belief that the consignment is misdeclared, samples were drawn for the purpose of chemical examination. The samples were forwarded to M/s.Coromandal Fertilizers Ltd., C....
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....HA, they had merely filed documents based on the details and the test report furnished by the exporter. They had no opportunity to handle or examine the goods and therefore cannot be held responsible for any violation in respect of the value or misdeclaration of the goods. The provisions invoked for imposing penalty against these appellants do not sustain for the reason that they had no role in the attempt to export the restricted goods. 3. Ld. Counsel stressed that there is no direct evidence to establish that the appellant had in any manner assisted the exporter to procure the restricted items. As a CHA, the appellants have relied on the documents furnished to them by their client.The provisions under the Customs Act cannot be invoked ....
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....000. Instead of this, CHA had declared the goods as 'Industrial Salt' falling under ITC HS28273990 which actually covers other Chlorides, Chloricoxides and Chloride hydroxides. CHA ought to have taken note of the fact mentioned in test report that the samples are naturally occurring Potassium Chloride. Ld. A.R therefore argued that by incorrect classification the appellants have abetted in the attempt to export the restricted goods. He prayed that appeals may be dismissed. 5. Heard both sides. 6. The Commissioner (Appeals) has imposed penalty of Rs.1 lakh each on the appellants under Section 114 of the Customs Act, 1962. The main allegation is that as a CHA, the appellants have abetted in the attempt to export the restricted goods by ....
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.... that the samples are naturally occurring inorganic chemical compounds. There is no mention of Muriate of Potash. In the test report dated 16.04.2009 issued by Bangalore Test House, there is no mention that it is a MOP or "fertiliser grade". It is recorded in this report 'industrial salt' is of technical grade. 8. In para-2 of the impugned order, the adjudicating authority has noted the details of the test report issued by Coromandal Fertilisers Ltd. on 03.08.2009. The test report says that the samples contain more than 60% of "water soluble potash as K2O (%); having more than 65% of articles in the range of 1.7 mm to 0.25 mm in size; having a moisture content of less than 0.5% and sodium as NaCl percent by weight (on dry basis) less tha....