2017 (4) TMI 1293 - AT - Customs

Penalty - export of red sander logs - Held that - It is an admitted fact that the appellant had allowed Badri K. Narayanan to use his IE Code - Law is well settled that a person who lends his name or licence incurs liability for the wrong use thereof. Even though appellant pleads innocence and also submits that there was no abetment committed by him, the lending of the IE Code made the appellant liable to penalty, when red sanders were found from the container which were concealed by the goods of the appellant. Penalty upheld - appeal dismissed - decided against appellant.

Summary

Issues:
Imposition of penalty for attempted export of red sanders without involvement in the act.

Analysis:
The appellant contested the penalty imposed for the attempted export of red sanders, claiming innocence and lack of control over the cargo and container used for the export. The appellant lent his IE Code to another party for the export of goods, which were later found to contain red sanders instead of the declared cargo. The investigation revealed that a smuggling racket was involved in loading the red sanders. The authorities justified the penalty based on the appellant's lending of the IE Code, which made him liable for any misuse. The appellant argued that mere lending of the IE Code should not result in penalties if there was no abetment on his part. However, the tribunal held that the appellant's involvement in the transaction, including allowing the use of his IE Code and knowledge of the goods being loaded, made him liable for the penalty.

The tribunal noted that the appellant's actions, such as allowing the use of his IE Code and facilitating the loading of goods, directly contributed to the concealment of red sanders in the container. Despite the appellant's claims of innocence and lack of abetment, the tribunal emphasized that lending one's name or license can lead to liability for any wrongful use. The tribunal highlighted that the appellant's goods were instrumental in concealing the red sanders, making him liable for the penalty. The tribunal dismissed the appeal, stating that interference would encourage smuggling and that mere lending of the IE Code cannot absolve the appellant of liability. The tribunal concluded that sympathy towards the appellant would be a miscarriage of justice, upholding the imposition of the penalty for the attempted export of red sanders.