TaxTMI 
TaxTMI 
1979 (2) TMI 115
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....and Inspection) Act, 1963 herein after referred to as the 'Quality Control Act'), why their goods should not be confiscated under Sections 113 and 118(b) of the Customs Act, 1962, and why penalty under Section 114 of the Customs Act should not be imposed upon them. Ext. P2 reply was sent by the exporters but their explanation as rejected by Ext.P3 order of the Collector of Customs (the 3rd respondent herein). The Collector held that the prohibition contained in the notification issued under Section 6 of the Quality Control Act was violated and that the goods were therefore liable to be confiscated. He however gave the exporters an option to pay a sum of Rs. 12,000/- in lieu of confiscation. The Collector further imposed a penalty of Rs. 20,....
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....nfiscation was ordered solely on the basis of Section 113(d) and Section 118(b) of the Customs Act. Although Section 11(2) (h) was mentioned in Ext. P1 notice, it appear to have been given up in the orders subsequently passed. There is no reference to Section 113(1) or Section 50 of the Customs Act. The power vested in the authorities by virtue of Clause 10A of the Exports (Control) Order, 1969 read with the provisions of the Import and Export (Control) Act, 1947 does not appear to have been invoked. 5. I shall now refer to the provisions of law relied on by the department in support of the impugned orders. The object of the Quality Control Act is the sound development of the export trade. An agency competent to issue quality control cer....
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....quality control and inspection." In the instant case it is not denied that the goods in question were covered by valid certificates and that it was under such certificates that they reached the Wharf. These certificates were evidence as to quality, and the goods covered by them were presumed to be export-worthy. The presumption disappears only when, upon a subsequent examination, it is found that the goods are in fact not export-worthy. 6. It is possible that even in the case of goods which were certified to be of proper quality, an exporter can be penalised in cases where he knowingly makes a wrong statement as to the quality of the goods. Section 50 of the Customs Act, 1962 requires the exporter to make a statement as to quality. It....
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....re being to the truth of such statements at the foot of such shipping bill or other documents." Section 3(2) of the Imports and Exports (Control) Act says that any violation of the requirement of a tribunal statement under Clause 10A of the Exports (Control) Order it deemed to be a violation of the prohibitions under Section 11 of the Customs Act, thereby bringing the operation all the provisions of the Customs Act, including those contained under Section 113(1). I have referred to Section 50 and Section 113(1) of the Customs Act and Clause 10A of the Exports (Control) Order, and Section 3(2) of the Imports and Exports (Control) Act, only to show with what powers the Customs Authorities are clothed in case an exporter knowingly makes wro....
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....113. Confiscation of goods attempted to the importers, exporters, etc. - The following export goods shall be liable to confiscation :- (d) any goods attempted to be exported or brought within the limits of any customs area for the purpose of being exported, contrary to any prohibition imposed by or under this Act or any other law for the time being in force; * * * * Admittedly no attempt had been made to export these goods after they were declared unexportworthy. Until the goods were brought to the Wharf and subjected to as examination, no attempt had been made to export them contrary to any prohibition imposed by or under the Customs Act or any other law for the time being in force. The certificates which operated, until they were....