2017 (9) TMI 1013 - AT - Customs

Export of prohibited goods - red sanders - absolute confiscation - penalty - Held that - it is clear that M/s. Max Shipping has failed to safely transport the customs cleared container to the gateway port. M/s. Max Shipping along with Shri S P Singh and Shri Navneet Bohra, MD have handed over the cargo to unauthorised persons which has facilitated the smuggling of red sanders out of the country. Hence, all the three persons are liable to penalty for abetting the smuggling of red sanders under section of 114 (i) of the Customs Act. Hence the penalties imposed are upheld. The adjudicating authority has observed that Shri Tatar has failed to provide the contact details of Shri Abdul Jaffer Sattar. By his conduct and actions, Shri Tatar has facilitated Abdul Jaffer Sattar in fraudulent export of contraband red sander , therefore, penalties levied u/s 114(i) ibid on him are liable to be upheld. Appeal dismissed - decided against appellant.

Summary

Issues:
1. Attempted export of red sander logs
2. Confiscation and penalties imposed
3. Role of various individuals in the smuggling attempt
4. Penalties challenged in appeals

Analysis:
1. The case involves the attempted export of red sander logs, which were seized after specific intelligence by the Directorate of Revenue Intelligence (DRI) revealed the smuggling attempt. The container, initially exported from Mundra port to Jebli Ali Port, U.A.E., was recalled and found to contain red sander logs, a prohibited commodity for export. The subsequent investigations led to the issuance of a show cause notice and penalties imposed on individuals involved in the smuggling attempt.

2. Various individuals, including Shri Abdul Jaffer Sattar, were implicated in the smuggling operation. Despite the mastermind, Shri Sattar, not being apprehended, a penalty of Rs. One crore was imposed on him. The penalties challenged in the appeals primarily revolve around the abetment and facilitation of the smuggling operation by different persons, leading to the confiscation of the red sander logs and imposition of penalties under the Customs Act, 1962.

3. The role of key individuals such as Shri Ismail Khan, proprietor of M/s. Mehar Traders, and M/s. Max Shipping, including S P Singh and Navneet Bohra, was scrutinized. Shri Khan was penalized for indirectly facilitating the smuggling by allowing Shri Sattar to control the export consignment. Similarly, M/s. Max Shipping was held responsible for failing to safely transport the container, leading to the substitution of goods with contraband. The penalties imposed on these individuals were upheld based on their involvement in the smuggling operation.

4. The appeals challenging the penalties imposed on various individuals, including Shri Ismail Khan, M/s. Max Shipping, and Narender Tatar, Director of PAP Fast Movers, were rejected by the Appellate Tribunal CESTAT NEW DELHI. The tribunal upheld the impugned order, emphasizing the abetment and facilitation of the smuggling attempt by the concerned individuals, leading to the confiscation of red sander logs and penalties under the Customs Act, 1962.

This detailed analysis highlights the key aspects of the legal judgment, including the smuggling attempt, roles of individuals, penalties imposed, and the tribunal's decision to uphold the impugned order.