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2023 (7) TMI 841
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....oods was declared as USD 6420 CIF and the same were sought to be exported to M/s.Southeast Packaging & Printing Development Co Ltd., China by filing free shipping bills without claiming any export incentives. Based on specific intelligence, the officers of SIIB, Custom House, Tuticorin inspected the goods. During the examination conducted along with Forest Range Officer, it was noticed that wooden pillars were made out of red sanders. Representative samples were taken from the lot and sent for analytical test for confirmation. On the reasonable belief that wooden pillars are made out of red sanders wood and are attempted to be smuggled out of the country in contravention of the provisions of the Customs Act, 1962 read with Foreign Trade (De....
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.... reddish brown wooden pillars painted black and wrapped with kraft paper was made out of red sanders. It is submitted by the Ld. Counsel that statements were recorded from the appellant--society viz. Sri V. Ramesh who is the Treasurer of the Society and Sri M. Siradudheen who was the person from whom the appellant had purchased the wooden pillars. There is nothing incriminating brought out in the statements. It can be seen from the perusal of statement of Sri V. Ramesh made on 13.02.2012 that the pillars were purchased in and around Karaikudi where these pillars were dismantled from old houses; that he initially thought that these were made up of country wood and the carpenter who worked in their society stated that these items were made of....
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.... that appellant deliberately attempted to export the goods which were rendered liable for confiscation. The appellant had no knowledge that the goods were made of red sanders and only after verification by the officers came to know that the pillars are made of red sanders. 4. Further, the export of red sanders is not prohibited and it requires a license for export. There is no evidence to show that the appellant had consciously involved in the act of attempt to export red sanders. Ld. Counsel submitted that the original authority has imposed penalty of Rs.30 lakhs on the appellant. The said penalty is a combined penalty imposed under Section 114 (i) and 114 AA of the Customs Act, 1962. There cannot be such imposition of combined penalty ....
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....2 as extracted below:-- "c) Schedule 2 of ITC (HS) gives the item wise export policy. Sl. No. 154 of the Schedule details the export policy with regard to red sanders wood in any form. The export policy provides that the export of red sanders is 'prohibited'. The nature of the restriction is described as 'not permitted to be exported'. Sl. No. Tariff Item HS Code Unit Item Description Export Policy Nature of Restriction 154 44039918 44079990 m3 (a) Red Sanders wood in any form, whether raw, processed or unprocessed, except at (b) below Prohibited Not permitted to be exported 155 32030090 38051010 92021000 92029000 92030010 92030090 92041000 92042000 92060000 92081000 92082000 92099200 92099....
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....have been complied with". 8. A close reading of the statement of Mr. M. Sirasudheen reveals that he has sold only six number of wooden pillars @ Rs.21,000/-- per MT. But, the total number of wooden pillars seized from the export consignment was 498. Mr. Ramesh who was looking after the entire affairs of M/s. Artisan's Welfare Society have accepted that he purchased the wooden pillars from Mr. M. Sirasudheen and other traders in and around Karaikudi where these pillars were reportedly dis--mantled from the old houses and that he thought that there pillars were made of country wood and the carpenter who worked in their society had said that these items were made of country wood. He has named only one trader viz., Mr. M. Sirasudheen form wh....
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....-- "SECTION 114. Penalty for attempt to export goods improperly, etc. - Any person who, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 113, or abets the doing or omission of such an act, shall be liable, - (i) in the case of goods in respect of which any prohibition is in force under this Act or any other law for the time being in force, to a penalty [not exceeding three times the value of the goods as declared by the exporter or the value as determined under this Act], whichever is the greater;" "SECTION [114AA. Penalty for use of false and incorrect material. - If a person knowingly or intentionally makes, signs or uses, or....