TaxTMI 
TaxTMI 
2026 (7) TMI 1381
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....ter hearing the submissions of the respective Counsels the substantial question of law was framed by the Learned Co-ordinate Bench at the time of admission is as follows; a) Whether there is sufficient material before the Tribunal to justify its finding that the appellant was actively involved in the smuggling racket of sandal wood and white powder on the basis of which penalty was levied on the appellant. Factual matrix 3. The appellant received a show cause notice under Section 124 of the Customs Act 1962 dated 2.11.2007 where it was alleged that on source information received in the Kolkata Zonal Unit of Directorate of Revenue Intelligence that five container loaded of Red sanders wood which is a prohibited item for export, would be smuggled out of India through Haldia Dock,Haldia .The registration number of trucks carrying the export containers were supplied and it was informed that three containers of red sanders loaded on those trucks had either reached Haldia or on 7.5.2000 would reach there shortly. Further information received that two other containers had already been delivered inside the dock on previous dates by the same truck in the name of same exporter....
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....inate with respect to transport of consignments to Singapore. As CHA they used to check the documentation and arrange for empty container and arrange to ship the containers and issue bill of loading upon negotiated charges .The containers from Bhutan are sealed by customs officers after examining the same both at Bhutan and in India and hence the Appellant did not have any reasonable doubt as to the nature of goods especially when the supporting papers were in order. Appellant cooperated with the investigation and assured to provide details of Sanjay Singh however in spite of such assurances given by his employer (Jamphel) Sanjay did not turn up and join the investigation and even Jamphel could not produce him. It is submitted by the Learned Counsel that the order in original records that Sanjay participated in personal hearing and in spite of the noting the same it was held that the appellant failed to produce Sanjay as assured and made him liable for compensation for no fault on his part. It is further argued that the appellant has not contravened any law or regulations rather he took steps to ascertain the whereabouts of Sanjay whom DRI officers could not trace out. The Learned ....
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....r omits to do any act or omission would render such goods liable to confiscation under Section 113, or abates the doing or omission such act shall be held responsible and thus the adjudicatory authority has rightly considered all the materials on record and ultimately rightly imposed penalty upon the appellant and confirmed by the Learned Tribunal. Hence prayed for dismissal of the appeal. Analysis 8. The factual matrix unveils that Balmer Lawrie a government of India undertaking company acted as Custom house agent and the appellant was an employee of said Balmer Lawrie. Two trucks were found standing at the main gate of Haldia Dockyard and on query both the trucks were taken inside the dock yard and on the next morning when the containers were opened it was found that there was red coloured wooden logs inside the container and on deep inquiry it was found that both the trucks came from Bhutan. Samples were drawn from the seized logs and after testing confirmed the same as red sanders which is a prohibited item for export. That apart white powder was also found in the containers were also mis declared as Talcom powder under CTH 2526 whereas it is actually fall under Chapter 3....
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....uggle prohibited item by replacing the goods of Bhutan export consignment during transit from Bhutan to the gateway port and accordingly utilised an exporter from Bhutan through a reputed Government of India Undertaking as Custom House agent for export of the consignment. 9. So on close scrutiny of the entire factual matrix and the observations made by the two forums no role of the appellant can be found which can prima facie satisfied that the appellant abated the conspiracy. In terms of clause 13 of the custom house agent licensing regulation 2004 the obligation of customs house agent are described and sub clause (l) reads as; ensure that all documents, such as Bills of entry and shipping bills delivered in the Custom station by him show the name of the importer or exporter, as the case may be and the name of the Custom House agent, prominently at the top of such documents. Sub-clause (o) reads as; Verify antecedent, correctness of Importer Exporter Code (IEC) Number, identity of his client and functioning of his client at the declared address by using reliable independent authentic documents data or information. So nowhere the duty to inspect the goods in the container was....
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....Explanation 2 to the section says that "whoever either prior to or at the time of the commission of an act does anything in order to facilitate the commission of that act, and thereby facilitates the commission thereof, is said to aid the doing of that act.' Thus in order to constitute abatement, the abettor must be shown to have intentionally aided the commission of the crime. Mere proof that the crime charged could not have been committed without the interposition of the alleged abettor is not enough compliance with the requirements of section 107. 10. In the present case the involvement of the appellant found by both the forum ultimately confined to the extent of negligence on his part in keeping his assurance to produce said Sanjay Singh. The appellant on the contrary found gave a reply to the show cause issued against him, appeared before the authority and gave his statement in accordance with Section 108 of the Customs Act and admitted how he got acquainted with said Sanjay Singh for their business purpose. He delivered the contact number which was known to him as obtained in course of their business transaction. In the decision of Ramesh Chandra Meheta vs State of West Be....