TMI Blog1999 (2) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 113(i) of Customs Act. There is a penalty of Rs. 2,00,000/- under Section 114(i) of Customs Act on the appellants represented by the partner. 2. The appellants had obtained licence to export the impugned goods and they filed shipping bill No. 03508, dated 15-7-92 seeking to export the impugned goods packed in 200 gunny bags/packages. Acting on intelligence that the certificate of origin and transport permit in Form No. II submitted by the appellants are not genuine but forged documents, the department investigated the matter. The appellants have claimed to have purchased the goods from M/s. Divya Impex Corporation, Hyderabad, who had issued a letter indicating the sale of goods to the appellants. The certificate of origin (issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only for exports by the named consignor to the particular ultimate consignee, whose name and details should be furnished to the Principal Chief Conservator of Forests, Madras, before seeking for certificate of origin of procurement. He has noted that the transfer of certificate with or without the permission of the Principal Chief Conservator of Forests, will render it null and void. He has noted that the named consignor M/s. Kannan Company alone can validly operate on the above certificate of origin, which is not issued in the name of M/s. J.J. Trading Corporation, who seek to export the goods under the said shipping bill. He has noted that the appellants had admitted that the forest authorities were not prepared to extend the validity p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (d) for the purpose of confiscation of goods and hence, ordered for the same and imposed penalty. The Commissioner rejected the prayer of the appellants that they were under bona fide belief that the certificate of origin issued by M/s. Divya Trading Corporation was a genuine and not fabricated. 4. The only question arises in this appeal at the time of argument by the learned counsel is as to whether the appellants ought to have been granted redemption under Section 125 of the Customs Act to redeem the goods, as they were holding proper licence to export the goods. As also they were holding letter of credit and in terms of the Regulation 5 of the Exports Imports Policy, as in effect, as on date, they were entitled to export the goods an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... placed on the judgment of the Karnataka High Court in the case of Mahalakshmi Flour Mills v. U.O.I. as reported in 1993 (68) E.L.T. 328 wherein a direction was given to the department to permit the export of sandalwood chips and powder, despite the fact that the exporter having purchase orders from foreign buyers (though not backed by letters of credit) making counter commitments with Forest Departments for purchase of material before 1-4-1992. Further reliance was made on the judgment of Tribunal in the case of Lavanya Exports v. CC CCE as reported in 1994 (69) E.L.T. 63, wherein also there was a order of absolute confiscation of sandalwood flakes, however, the Tribunal directed the same to be released on payment of redemption fine. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re in below :- 3. We are of the view that insofar as the order directing confiscation of the goods is concerned, it is unassailable in facts or in law. So also the order levying penalty is justified by facts and warranted by law. There is, however, substance in the last contention urged on behalf of Counsel for the appellants. The Collector of Customs has passed an order for absolute confiscation of the imported goods without giving the appellants an option to redeem the same on payment of such fine as may be considered appropriate by him. Reliance has been placed by learned Counsel for the appellants on Section 125(1) of the Customs Act in support of the plea that the Collector had the discretion to pass such an order and he should have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned officer to take a decision one way or the other in accordance with law as is considered appropriate in the circumstances of the case after hearing the appellants. We have no doubt that the concerned officer will take into consideration all the relevant circumstances including the submission urged on behalf of Counsel for the appellants that the goods in question, zip fasteners, can at present be imported freely, for whatever it is worth. 5. The appeals are, therefore, dismissed subject to modification to the aforesaid limited extent. There will be no order as to costs. 7. On a careful consideration, we further notice that in the case of Mahalakshmi Flour Mills (supra), export was granted in respect of sandalwood chips and powder, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|