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TMI Blog2011 (4) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... f CFS M/s Seabird Marine Services Pvt.Ltd., on the basis of check list dt.12.3.10 by the CHA. On a doubt, on prima facie examination, the rice appeared to be non-Basmati rice, though declared by the appellant as Basmati rice, and in as much as the export of non-Basmati rice is prohibited, the said consignment was put under detention. 2. Thereafter, a sample was drawn from the consignment and was sent for analysis at Regional Agmark Laboratory, Mumbai. As per the test report, dt.19.3.10, the rice was found to be non-Basmati rice. Thereafter, the detained quantity of 350 MTs was seized under the proper panchnama on 23.5.10. During the course of further investigations, statements of various persons were recorded. In his statement, Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een Lakhs only). In addition, penalties of Rs.5 lakhs (Rupees Five Lakhs only) each have been imposed on M/s Phonix Traders Ahmedabad under Sections 114 and 114AA of Customs Act, 1962. The adjudicating authority has further imposed separate penalty of Rs.3 lakhs (Rupees Three Lakhs only) on Shri Solly Perumal, Partner of M/s Phonix Traders under Section 114AA of Customs Act, 1962. Penalty of Rs.2 lakhs (Rupees Two Lakhs only) each stand imposed on M/s Trinity Shipping & Allied Services under Sections 114 and 114AA along with imposition of penalty of Rs.2 lakhs (Rupees Two Lakhs only) on Shri Saju Perumal, Director of M/s Trinity Shipping & Allied Services. The said order is impugned before us. 4. We have heard ld.Advocate appearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er taking into consideration the various factors, the redemption fine and penalties imposed upon exporters were reduced to 25% of the amount imposed by the Commissioner and the penalties imposed upon the CHA were set aside by extending the benefit of doubt to him. 6. Countering the arguments, ld.SDR appearing for the Revenue submits that admittedly, the consignment of rice in question is liable to confiscation and redemption fine of 15 lakhs (Rupees Fifteen Lakhs only) imposed by the Commissioner in respect of consignment totally valued at more than Rs.1 crore (Rupees One Crore) is justified. He also supports the impugned order of Commissioner for imposition of separate penalty under the provisions of Section 114 and 114AA on the gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndertaking export of rice of about around Rs.1.5 Crore, no reasonable prudent man would commit such types of mistakes. The repeated detection of such types of cases leads us to believe that such action on the part of the exporters is intentional and non-Basmati rice is attempted to be exported in the guise of Basmati rice. We also note that the redemption fine of Rs.15 lakhs (Rupees Fifteen Lakhs only) fixed by the Commissioner for consignment of rice valued at Rs.1.44 crores (Rupees One Crore and Forty Four Lakhs only) cannot be held to be excessive. 9. As regards penalty of Rs.5 lakhs (Rupees Five Lakhs only) imposed on M/s Phonix Traders Ahmedabad under each of Sections 114 and 114AA of Customs Act, 1962, we find that the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly, set aside the same. 12. As regards penalty imposed upon M/s Trinity Shipping & Allied Services, a CHA firm, we find that there is a finding of the Commissioner that Shri Saju Perumal, Director of CHA firm is a brother of Shri Solly Perumal, Partner of exporting firm. As such, it cannot be held that he was unaware of export of non-Basmati rice by Shri Solly Perumal s partnership firm. We also note that in the above referred judgment of this Bench in the case of M/s J.G. Agro Foods, the Tribunal has observed that the facts of the case shows that the CHA was aware of the export of non-Basmati rice and has held him liable to penalty of Rs.2.5 lakhs (Rupees Two Lakhs, Fifty Thousands only) in that case. The position in the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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