2022 (4) TMI 268 - AT - Customs

Export of restricted goods - sandalwood oil in the guise of jasmin sambac essential oil and cypriol essential oil - demand passed solely relying upon acknowledgment of the appellant about the Chemical Examiners report and the acknowledgement to the effect that the essential oil which was exported was actually the sandalwood oil instead of being Jasmine Sambac essential oil as was declared by appellant - Confiscation - redemption fine - penalty u/s 114 of CA - HELD THAT - Though the learned Counsel has emphasised that the said wrong mention was absolutely inadvertent but perusal of entire record shows no single document to reveal any such circumstances due to which the said inadvertent mistake would have occurred by the appellant. In absence thereof, acknowledgement is nothing but the admission of noticed contravention of the provisions of Customs Act, 1962. Admissions are the best evidence and in terms of Section 52 of Indian Evidence Act admissions need no further proof. The Chemical examiner report of 05.12.2018 though has been impressed upon by learned Counsel for the appellant but the said report also reveals that the essential oil seized from the appellant was sandalwood oil instead of Jasmine Sambac oil which was mentioned on export consignment. Department has also investigated that the earlier also the appellant had been exporting the essential oil in the name of Jasmine Sambac essential oil and it also has been availing the duty draw back. Nothing could be produced by the appellant to show that he was dealing with both the kinds of oils. Appellant was asked repeatedly to submit the requisite documents including the sale and purchase letters, the balance sheet and or any other such documents which may prove the mistake was bondafide but despite the demand. No such evidence was produced by the appellant before the Adjudicating Authority Below. Appeal stands dismissed.

Summary

Issues:
1. Alleged export of restricted item - sandalwood oil under false declaration.
2. Confiscation of goods, imposition of penalties, and demand of drawback.
3. Appeal against the order of confiscation, penalties, and demand of drawback.

Analysis:
1. The case involves an appeal against an order regarding the export of essential oils, specifically sandalwood oil under the false declaration of Jasmine Sambac oil. The appellant exported a consignment declaring it to contain both types of essential oils, but upon examination, it was found to be sandalwood oil. The export of sandalwood oil is restricted, requiring an appropriate license. The Chemical Examiner's report confirmed the misdeclaration, leading to allegations of contravention of Customs Act and foreign trade regulations.

2. The Original Adjudicating Authority ordered confiscation of the sandalwood oil, which had already been redeemed with a fine, imposing penalties under relevant sections of the Customs Act. Additionally, penalties were imposed on the Clearing House Agent (CHA) and a demand for drawback was confirmed. The appeal challenged this order, leading to the Appellate Tribunal's review. The Tribunal upheld most aspects of the original order, except for one penalty under section 114(AA), leading to the appellant's further appeal.

3. During the hearing, the appellant argued that the misdeclaration was a mistake made by their staff and emphasized the Chemical Examiner's report. However, the Departmental Representative highlighted findings in the order under challenge, emphasizing the lack of evidence supporting the mistake being inadvertent. The Tribunal observed that the appellant failed to provide any documents proving the mistake was genuine, and the CHA's lack of response raised further concerns about due diligence. Ultimately, the Tribunal found no infirmity in the order under challenge and dismissed the appeal, upholding the penalties and confiscation.

This detailed analysis covers the issues of false declaration, penalties, confiscation, and the Tribunal's decision based on the arguments presented by both parties during the appeal process.