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TMI Blog1993 (10) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... ht G/N FOB value Rs. Export Licence No. 1. Sandal wood flakes 400 20.720 MT 20.000 MT 28,22,027/- 0034037 12-11-1992 issued by Controller of Imp. & Exp. Madras When the Customs authorities inspected and examined the goods on 14-3-1993 they effected seizure of the same on 16-3-1993 under a mahazar as per law on the ground that the goods that were sought to be exported did not conform to the statutory requirements in terms of the licence and the value of the goods was also misdeclared. On examination of the goods, the Department found the details in regard to the various lots as under : Sl. No. Description of the goods Marks/Grade No. of bags Total weight MT Approximate weight of each piece 1. Sandal wood flakes thin flat pieces/ shavings SB B 20 1.024 less than 50 gms. 2. Sandal wood split pieces of irregular size length varying from 3" to 8" SB M 80 4.096 less than 50 gms. 3. Sandal wood pieces roughly of rectangular shape with thickness varying from ½ to 3" and length varying 3" to 6" SB R 300 15.600 Weight ranging from 30 gms to 300 gms. - - Total 400 20.720 On 19-3-1993 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6288/93 and the High Court by its order dated 18-5-1993 directed the appellant to deposit Rs. 5 lakhs towards penalty and Rs. 25 lakhs as Bank guarantee and also directed the appellant to furnish a security for Rs. 20,00,000/- for release of the goods. The appellant thereafter moved the High Court seeking a clarification of this order and the High Court by its order dated 19-5-1993 clarified that instead of the appellant furnishing a security, appellant should give a bank guarantee for Rs. 45 lakhs and permitted the appellant to export the goods to Taiwan. Subsequent to this order of the High Court the Central Govt. Standing Counsel moved the High Court on 12-6-1993 stating that the Central Government objected to the export and prayed for stay of the operation of that part of the order of the High Court permitting the appellant to export the goods to Taiwan. The appellant also by application dated 4-6-1993 prayed that the case may be posted before the Division Bench which passed the earlier order and accordingly the earlier Bench which initially heard the matter, had passed an order dated 19-7-1993 permitting the appellant to export the goods in question. Aggrieved by the Order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant has absolutely no objection, as reiterated in the reply to the show cause notice, to have the pieces reduced to weight of 50 gms and less and, therefore, the appellant may be permitted to export the goods in terms of the order of the Supreme Court cited supra. It was further urged that the goods do not involve any duty or have any revenue implication and it is not the case of the Department that the appellant stands to gain by not mutilating the goods. It was further submitted that the appellant was not actuated by any mala fides and was not to gain monetarily by exporting bigger size. The learned Counsel in this context submitted that the Department also has not alleged in any way that the appellant stood to gain by exporting bigger pieces. So far as the charge relating to misdeclaration in regard to the value is concerned, the learned Counsel contended that the Department had not conducted any investigation with reference the value of similar goods and indeed did not have to say anything against the appellant particularly in respect of the past instances where similar goods were exported for similar value or lesser value. The learned Counsel further submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olicitor General) cannot be permitted to be exported". Therefore the Department has no objection to permit export of sandal wood pieces of 50 gms in weight or less which according to the Department would be "sandal wood flakes" permissible for export and covered by licence in question. It is not disputed that there is no definition of sandal wood flakes either in the Customs Act, 1962 or in the Andhra Pradesh Forest Rules. We feel that the Department before taking the stand that part of the goods were not sandal wood flakes; in the absence of any definition in regard to the sandal wood flakes in any Act or Rules, should have chosen to invite the opinion of the competent authority like the Conservator of Forest or should have done some market enquiries in this regard. Unfortunately nothing had been done. We also take note of the fact that the goods in question are not dutiable and does not have any revenue implication so far as the department is concerned. Therefore, in the facts and circumstances of the case, in our view, the whole controversy seems to be academic since even according to Department sandal wood flakes of 50 gms per piece or less are permissible for export under the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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