2007 (11) TMI 159 - AT - Customs

Consignment of Soyabean confiscated on ground that containers into which the consignment was stuffed were loaded or to the vessel for export without submission of Shipping Bills & without obtaining Let Export Order from the proper officer Freight Broker wrote to Shipping Line to load without consulting CHA - CHA filed shipping bill without completing the formalities Exporter not made genuine attempt to stop export - so Confiscation & Penalty on exporter freight broker & CHA is justified

Summary

Issues: Confiscation of goods under Sec. 113(f) and (g) for export violations, imposition of penalties under Sec. 114(iii) of the Customs Act, 1962 on exporter, Shipping Line, Freight broker, and CHA.

In this case, the Commissioner confiscated a consignment of Soyabean under Sec. 113(f) and (g) due to violations during export. The consignment was loaded onto a vessel for export without submission of Shipping Bills or obtaining a "Let Export Order." The Commissioner imposed fines and penalties under Sec. 125 and Sec. 114(iii) of the Customs Act, 1962 on the exporter, Shipping Line, Freight broker, and CHA. The exporter's attempt to stop the loading of containers was considered untimely, leading to confiscation and a penalty of Rs.2,50,000. The Freight broker's actions, loading containers without verifying Customs formalities, also led to confiscation and a reduced penalty of Rs.50,000. The CHA's failure to complete formalities and inform the Shipping Line about pending orders resulted in confiscation and a reduced penalty of Rs.1,00,000.

The judgment highlighted violations of Sec. 33, Sec. 34, and Sec. 40 of the Customs Act. Sec. 33 was contravened as export goods were not loaded at an approved place, while Sec. 34 was violated by loading goods without the supervision of a proper officer. Additionally, Sec. 40 was breached as the person in charge of the vessel allowed loading without a duly passed shipping bill. The confiscation was deemed sustainable due to these breaches, with no interference in the redemption fine due to the goods' value exceeding Rs.46 lakhs. The penalties imposed were reduced based on the circumstances of each party's involvement.

Ultimately, the Tribunal upheld the confiscation of goods but reduced the penalties on the exporter, Freight broker, and CHA. The exporter's penalty was reduced to Rs.2,50,000, the Freight broker's to Rs.50,000, and the CHA's to Rs.1,00,000. The judgment was pronounced on 29-11-07, partially allowing the appeals and adjusting the penalties accordingly.