2011 (7) TMI 1106 - AT - Customs

Export of Red Sanders - Misdeclaration of export goods - Smuggling - prohibited Item - Red Sanders - goods were declared as safety matches for export to Sri Lanka - absolute confiscation - Penalty - Held that - both the appellants were involved in the attempted illicit export of Red sanders. Shri Sakthi and Shri Ramasubbu were very much involved in the plan for exporting red sanders and the stuffing of red sanders after unloading safety matches. Shri Sakthi also received part of the amount for smuggling red sanders. Shri Ramasubbu arranged for the CHA with the full knowledge that red sanders, a prohibited item was going to be exported. Both of them have also confessed their roles in statements recorded under Section 108 of the Customs Act, 1962, which are admissible as evidence in proceedings against them - the adjudicating Commissioner was right in coming to the conclusion that both the appellants herein were liable to penal action for their involvement in the illicit export of red sanders which is a prohibited item. Penalty of ₹ 7.5 lakhs against Shri Sakthi - Held that - Considering the fact that the value of red sanders sought to be illicitly exported was about ₹ 75 lakhs and considering the role and involvement of Shri Sakthi in the entire case, we are of the view that the penalty imposed on him cannot be said to be disproportionate - penalty upheld. Penalty of ₹ 7.5 lakhs on Shri Ramasubbu @ Ramesh - Held that - Considering the comparative role of Shri Sakthi and Shri Ramasubbu, we are of the considered view that ends of justice will be met if the penalty imposed on Shri Ramasubbu is kept a little lower than that what has been imposed on Shri Sakthi - quantum of penalty on Shri Ramasubbu @ Ramesh is reduced to ₹ 5 lakhs. Appeal allowed in part.

Summary

Issues: Attempted illicit export of Red Sanders; Confiscation of goods; Imposition of penalties.

Attempted Illicit Export of Red Sanders:
The case involved the interception of a container declared to contain safety matches but found to have Red Sanders logs concealed within. The container was detained and moved for detailed examination, revealing the presence of Red Sanders logs prohibited for export. The adjudicating Commissioner confiscated the Red Sanders logs, safety matches used for concealment, and imposed penalties on the involved parties based on their roles in the illicit export scheme.

Confiscation of Goods:
The adjudicating Commissioner ordered the absolute confiscation of the Red Sanders logs, safety matches used for concealment, and additional safety matches illicitly removed from the sealed container after being cleared for export. The container was released, but penalties were imposed on individuals involved in the attempted illicit export.

Imposition of Penalties:
After detailed analysis of the evidence and statements recorded under the Customs Act, it was concluded that the appellants were involved in the attempted illicit export of Red Sanders. Both appellants confessed their roles, leading to the imposition of penalties. The penalty imposed on one appellant was upheld, considering the value of the Red Sanders involved, while the penalty on the other appellant was reduced based on a comparative assessment of their roles. The judgment highlighted the importance of not reducing penalties disproportionately based on the severity of the offense and individual involvement.

This judgment by the Appellate Tribunal CESTAT Chennai addressed the issues of attempted illicit export of Red Sanders, confiscation of goods, and imposition of penalties on involved parties. The detailed examination of the case, including the interception of the container, the role of the appellants, and the confiscation of prohibited goods, led to the conclusion that penalties were justified based on the evidence and statements recorded. The judgment emphasized the significance of maintaining proportionality in penalty imposition based on the severity of the offense and individual involvement, ensuring that the ends of justice were met.