TaxTMI 
TaxTMI 
2009 (3) TMI 96
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....partment, this particular case warrants lenient consideration. Accordingly, I allow redemption of the confiscated sandal wood valued at Rs.64.00 lakhs (Rupees Sixty lakhs) on a fine of Rs.8.00 lakhs (Rupees eight lakhs) only subject to the condition that the appellants on release of the same would reprocess the goods into finished sandal wood and export the same within three months from the date of release of the goods in dispute. Penalty of Rs.5.00 lakhs imposed on the appellant firm is reduced to Rs.2.00 lakhs (Rupees two lakhs) and since no specific involvement of the appellant partner has been brought out, penalty on him is set aside." The facts of the case are briefly as follows:- The respondent is a partnership firm, which is re....
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....rmitted under the provisions of law and/or the policies. In this background of the factual matrix, it was urged before the Tribunal that the Tribunal should consider the case leniently in case of imposition of penalty and no separate penalty should be imposed on the partner of the firm in question. The Tribunal after considering the facts and circumstances of the case and after hearing the parties came to the conclusion that the prohibited goods have been involved in export and since the person who signed the shipping bills was duly authorised by the firm and the partners cannot absolved totally from the penal consequences. Therefore, the confiscation of the prohibited sandal wood is in order and the Tribunal passed the order accordingly. ....
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.... and Regulation) Act, 1992 in particular the following rules were placed before us for our consideration :- "11. Contravention of provisions of this Act, rules, orders and export and import policy (1) No export or import shall be made by any person except in accordance with the provisions of this Act, the rules and the orders made thereunder and the export and import policy for the time being in force. (2) Where any person makes or abets or attempts to make any export or import contravention of any provision of this Act or any rules or orders made thereunder or the export and import policy, he shall be liable to a penalty not exceeding one thousand rupees or five times the value of the goods in respect of which any contravention is....
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....er, definition has been given in respect of the word 'prohibited' under the Customs Act. Section 2(33) of the Customs Act defines prohibited goods to mean goods, the import and export of which is subject to any prohibition under the Customs Act or any other law for the time being in force. He further pointed out that Section 11 of the Custom Act provides the power to prohibit either absolutely or subject to conditions the import or export of goods. In the facts and circumstances of the case the Commissioner of Customs (Preventive), having regard to the fact that the goods attempted to be exported were Sandal Wood and not finished products and thereby it attracts, according to Mr. Bose, under 'prohibited items of Part I' of Chapter XVI of....
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.... He further tried to contend before us that in the said section it has been specifically used the word 'prohibited' that prohibition has to be read in conjunction to the word 'negative list' as has been framed under the said policy and therefore he submitted further that is the reason why in section 11 it has been stated with regard to prohibition on importation and exportation of goods and specifically stated that prohibited either absolutely or otherwise or subject to such condition has been specifically mentioned in the said Section 11 of the said Act. That is the reason Mr. Bose tried to convince us that the word which has been used by the legislators under Section 125 as 'prohibited' has to be read as prohibited absolutely. In our ....
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....ch discretion which has been specifically dealt with by the authority the Tribunal should not have any authority to sit on appeal on the said question and it is not within the domain of the Tribunal to come to such conclusion to reduce the amount as has been sought to the done in the facts and circumstances of the case without properly testing the question that whether the discretion has been applied by the said authorities properly or not. Hence, in our considered opinion that part of the order so passed by the Tribunal cannot be accepted by us and the said portion of the order of the Tribunal has to be set aside. We only impose penalty as directed to be paid by the firm as well as by the partner has been adjudicated upon by the said au....