2017 (8) TMI 1084 - AT - Customs

Import of Contraband item - Smuggling - Red colored wooden logs was found concealed below those sanitary goods - Held that - It can be concluded that Sri K.A. Durai, noticee number 2 had nothing to say against the charges brought against him by the subject Show Cause Notice. Instead of appearing even after issuance of Show Cause Notice, he preferred to go in hiding to save him from the pecuniary penalty, proposed to be imposed on him by the subject Show Cause Notice. His involvement in the act of illegal export of Red sanders wood was detailed in the Show Cause Notice and he had nothing to reply in respect of the charges brought against him. It proves beyond doubt about involvement of Sri K.A. Durai in the illegal export of red Sanders out of India and penalty, as proposed in the subject Show Cause Notice is imposable on him. There is no attempt on the part of the appellant to refute the allegations - appeal dismissed - decided against appellant.

Summary

Issues Involved: Illegal exportation of Red Sanders wood, Confiscation of goods, Imposition of penalty

Issue 1: Illegal exportation of Red Sanders wood

The case involved the interception of a lorry transporting concealed red colored wooden logs by DRI officers. The drivers initially claimed to be carrying sanitary items but later confessed to concealing red colored wood logs. The vehicle was brought to Customs godown for examination, where the logs were discovered. The Commissioner confiscated the red Sanders and imposed a penalty on the appellant for their involvement in the illegal export under section 114(i) of the Customs Act, 1962. The adjudicating authority identified key persons involved in the illegal transportation, including the appellant and others, based on statements and evidence gathered during the investigation.

Issue 2: Confiscation of goods

The DRI officers seized the red Sanders wood and other materials concealed in the vehicle after detailed examination at the Customs godown. The impugned order by the Commissioner confiscated the red Sanders wood absolutely among other items. The confiscation was based on the findings that the appellant played a prime role in the illegal exportation and transportation of the red Sanders wood from India to Nepal. The order highlighted the involvement of various individuals in procuring, storing, loading, and concealing the contraband logs for export.

Issue 3: Imposition of penalty

In addition to the confiscation of goods, the Commissioner imposed a penalty of ?5,00,000 on the appellant considering their significant role in the illegal export activity. The adjudicating authority observed a close connection between the appellant and other key persons involved in the transportation of red Sanders wood. Despite the appellant's counsel arguing lack of evidence against their involvement, the authority found no attempt by the appellant to refute the allegations or provide a defense. Consequently, the appeal filed by the appellant was rejected, and the order of the adjudicating authority was upheld.

This detailed analysis of the judgment provides insights into the illegal exportation of red Sanders wood, the confiscation of goods, and the imposition of penalties on the involved parties based on the evidence and findings presented during the case proceedings.