2014 (2) TMI 344 - AT - Customs

Waiver of pre deposit - Smuggling of goods - Mis declaration of goods - Export of red sander declared as furniture - Held that - Role of the shipping agency, its Managing Director as well as Operational Executive was examined. There is no doubt that the shipping agency has played an active role in the export of red sander within its special knowledge. When the seal of the container was broken and replaced fraudulently as is apparent from the adjudication order - Illegal export of prohibited goods was intercepted by investigation. Prima facie, it is not a procedural irregularity that can be attributed to the shipping agency and its officers but their conscious involvement goes to the root of the matter. They abated commitment of the offence. Prima facie, observation made above brings out categorically how the racketeers attempted to export the red sanders with the knowledge of some of the customs officers. But unfortunately those officers have not been brought to the fold of the law by the present adjudication order. It would be proper for ld. CDR to take-up the matter with the D.G. vigilance for appropriate measure under law - The role of CHA in the entire case can be appreciated for its exclusive knowledge about the racket. So also its Director, Shri Narendra Tater was equally a conduit in the entire smuggling. Therefore, it would cause serious prejudice to the interest of justice, if there is total waiver of pre-deposit to any of the appellants - Conditional stay grnated.

Summary

Issues involved:
1. Alleged mis-declaration leading to penalty on the appellant for attempting to export prohibited goods.
2. Liability of the exporter and Customs House Agent (CHA) in the case.
3. Involvement of various individuals and entities in the smuggling of red sanders.
4. Role of the shipping agency and its officers in the illegal export.
5. Decision on pre-deposit amounts for the appellants.

Issue 1: Alleged mis-declaration leading to penalty on the appellant for attempting to export prohibited goods:
The judgment highlighted that the appellant faced a penalty due to mis-declaration as red sanders, prohibited goods, were found in the consignments attempted to be exported. The court noted that the appellant's plea of goods being stuffed in the presence of customs authorities was baseless as the prohibited goods were discovered in the containers, indicating deliberate involvement in illegal export.

Issue 2: Liability of the exporter and Customs House Agent (CHA) in the case:
The responsibility of the exporters was discussed, emphasizing that the liability does not cease upon delivery to the Inland Container Depot (ICD) if fraud against Revenue is committed. The role of the CHA was also examined, with the court finding that the CHA and its Director were conduits in the smuggling, leading to penalties imposed on them.

Issue 3: Involvement of various individuals and entities in the smuggling of red sanders:
The judgment detailed the mastermind behind the smuggling operation, highlighting the intricate network involved in the illegal export of red sanders. The court pointed out the active role played by different individuals in the racket, including the exporter, CHA, and shipping agency, leading to penalties and directions for pre-deposits.

Issue 4: Role of the shipping agency and its officers in the illegal export:
The court examined the involvement of the shipping agency and its officers, noting that their conscious participation in replacing seals and facilitating the illegal export indicated their close link with the smuggling racket. The court directed significant pre-deposit amounts from the shipping agency and its officers due to their active role in the offense.

Issue 5: Decision on pre-deposit amounts for the appellants:
After considering the material facts and involvement of all appellants in the smuggling operation, the court directed specific pre-deposit amounts to be made within a stipulated time frame. Failure to comply with the pre-deposit directions would result in serious consequences, emphasizing the importance of adhering to the court's orders.

The judgment meticulously analyzed the involvement of various parties in the illegal export of red sanders, emphasizing the need for accountability and pre-deposit requirements to ensure justice and deterrence in such cases. The detailed examination of roles and responsibilities of each entity involved provided a comprehensive understanding of the case and the legal consequences imposed by the court.