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Issues:
1. Imposition of penalty and confiscation of sale proceeds for unauthorized export of buffaloes. 2. Validity of penalty and confiscation orders under the Customs Act, 1962. Analysis: 1. The appellant was granted an Import-Export Code (IEC) and applied for export permission for buffaloes to Nepal. Despite lacking the required license for cattle export, the appellant exported buffaloes to Nepal based on approvals from local authorities. Subsequent investigations revealed the unauthorized export, leading to penalty imposition and confiscation of buffaloes and sale proceeds under Section 114 of the Customs Act. The Commissioner (Appeals) upheld the order, prompting the appellant's appeal against the penalty and confiscation. 2. The appellant argued that the Order-in-Original exceeded the show cause notice by including confiscation of sale proceeds, which was not initially proposed. The appellant claimed to have sought permission from the authorities before export and contended that the permission granted by the local officer absolved him from penalties. Conversely, the Department contended that the appellant knowingly misled authorities by misrepresenting permissions, justifying penalty imposition. The Department also argued that once confiscation is lawful, sale proceeds automatically get confiscated under Section 121 of the Customs Act. 3. The Tribunal analyzed the submissions and evidence, finding that the appellant intentionally withheld information regarding permission applications, misleading authorities about approvals. The Tribunal noted that the appellant's actions did not absolve him of misleading authorities, especially regarding the requirement for a license for cattle export. The Tribunal rejected the appellant's defense that the assessment of export bills precluded penalties, as no formal assessment was conducted due to the nature of the goods. The Tribunal upheld the penalty, concluding that the appellant's misleading actions warranted the imposed penalty. 4. Regarding the confiscation of sale proceeds, the Tribunal highlighted discrepancies between the show cause notice and the Order-in-Original. The show cause notice only mentioned penalty imposition, not confiscation of sale proceeds under Section 121. As such, the Tribunal deemed the confiscation beyond the scope of the notice and set aside the order upholding the confiscation. However, the Tribunal upheld the penalty imposed on the appellant, partially allowing the appeal based on these findings. In conclusion, the Tribunal upheld the penalty on the appellant for unauthorized cattle export due to intentional misleading actions. Still, it set aside the confiscation of sale proceeds as it exceeded the scope of the show cause notice, highlighting the importance of proper notice before imposing liabilities.
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