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Issues:
1. Confiscation of goods meant for export. 2. Imposition of personal penalty under Section 114 of the Customs Act, 1962. 3. Involvement of the Director of the exporting company and the Clearing House Agent (CHA) in misdeclaration of goods. Confiscation of Goods: The appeals arose from an impugned order confiscating goods meant for export, with an option for redemption on payment of a fine and imposition of personal penalties. The Commissioner found that while some cartons were as per declaration, others contained old, used, and torn goods. The appellants contended a mix-up in the factory and proposed selling the rejected goods to foreign buyers at a lower price. The Tribunal upheld the confiscation of 25 cartons due to false declaration, rejecting the mix-up claim as an afterthought. Imposition of Personal Penalty: The Commissioner imposed personal penalties on the appellants under Section 114 of the Customs Act, 1962. The Tribunal reduced the penalty on the exporting company to Rs. 25,000, already deposited, and set aside penalties on the Director and the CHA. Notably, a separate penalty on the CHA was deemed unjustified as they filed documents based on information from the exporter without incriminating evidence. Involvement of Director and Clearing House Agent (CHA): The Director of the exporting company faced penalties for signing off on documents related to the misdeclared goods, despite admitting the use of rejected materials. The Tribunal sustained the penalty on the Director but reduced it due to the substantial value of misdeclared goods. However, penalties on the CHA and its Director were set aside as there was no evidence of their knowledge or involvement in the misdeclaration. Majority Order: In a majority decision, the appeals of the exporting company and one individual were rejected, while the appeals of the CHA and another individual were allowed. The Tribunal's decisions regarding penalties and confiscation were upheld based on the majority opinion. ---
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