2017 (9) TMI 1450 - AT - Customs

Penalty u/s 114 (i) of the Customs Act, 1962 - Smuggling - red sanders - claim of appellant is that they have no knowledge of the attempt of illegal export - Held that - Shri Chaphamayum Sana Singh had confirmed that all the three persons i.e. he himself, Shri Tomcha Singh and Shri Taorem Naba Singh, were physically present at the time of loading of Red Sanders and Potatoes and fruits. Thus, it is clearly evident that such persons had full and complete knowledge of the contraband goods being transported - it is clearly evident that the appellants except Shri Bajinder Singh had consciously loaded the Red Sanders attempting to export illegally. The penalty on Shri Chaphamayum Sana Singh, Shri Tomcha Singh and Shri Taorem Naba Singh is upheld - the amount of penalty is reduced to ₹ 50,000/- each in case of the appellant - penalty imposed on Shri Bajinder Singh is set aside and absolute confiscation of vehicle is upheld. Appeal allowed - decided partly in favor of appellant.

Summary

Issues:
Appeal against penalty imposed under Section 114(i) of the Customs Act, 1962 for illegal export of Red Sanders wood logs using Potatoes and Maushambi fruit to Myanmar. Confiscation of goods under Sections 113(b) and (d), Section 119, and Section 115(2) of the Act. Imposition of penalty on truck-driver, assistant, and owner of the truck. Confiscation of the truck under Section 115(2) of the Act. Applicability of case laws cited by the appellants. Reduction of penalty amount.

Analysis:
The appellants challenged penalties imposed for illegal export of Red Sanders wood logs. The officers seized the goods under suspicion of illegal export using Potatoes and Maushambi fruit. The Commissioner of Customs ordered absolute confiscation of goods and imposed penalties of ?2 lakhs each on the appellants. The appellants denied knowledge of the smuggling attempt. The Judicial Member considered statements of involved parties and found that some had full knowledge of the contraband goods. The driver, assistant, and owner of the truck were implicated in the smuggling syndicate. The Judicial Member agreed with the Adjudicating Authority's findings, justifying the penalties on some appellants but reducing the amount to ?50,000 each based on their roles and financial backgrounds.

The owner of the truck contested the penalty, claiming lack of knowledge about the smuggling attempt. The Judicial Member noted that the driver, as the agent of the owner, had knowledge of the illegal transport, upholding the confiscation of the vehicle under Section 115(2) of the Act. However, the penalty on the owner was set aside due to lack of evidence indicating his involvement in the smuggling syndicate.

The Judicial Member emphasized that the appellants, except the truck owner, were aware of the illegal export of Red Sanders wood logs. The case laws cited by the appellants were deemed inapplicable to the present circumstances. Consequently, penalties on specific individuals were upheld but reduced, while the penalty on the truck owner was revoked. The absolute confiscation of the vehicle was maintained. The appeals filed by the appellants were disposed of accordingly on 15.02.2017.