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TMI Blog2015 (1) TMI 981X X X X Extracts X X X X X X X X Extracts X X X X ..... Partnership Firm has filed the Writ Petition challenging paragraph No.66 of the show cause notice dated 2.7.2014, issued by the first respondent calling upon the Firm and its partners to show cause as to why the seized 218.104 kgs. of Sandalwood logs valued at Rs. 19.72,517/- attempted to be exported vide shipping bill dated 31.12.2013, should not be confiscated under section 113 (d) and 113 (k) of the Customs Act, 1962 (the Act) and why penalty should not be imposed on them under sections 114 and 114 AA of the Act. 2.1 The partners have filed the individual writ petitions in W.P.NOs.29744 & 29745 of 2014 to quash paragraph No.67 of the show cause notice dated 2.7.2014 whereby they were called upon to show cause as to why the seized 1786 K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner and made it clear that the impugned proceedings is only a show cause notice and it is well open to the petitioner to submit their reply and contest the matter on merits. Having made this clear this Court was inclined to consider the prayer made by the petitioner in W.P.Nos. 29744 and 29745 of 2014, wherein a prayer was made to quash paragraph No.67 of the show cause notice proposing to seize 1686 kg. of Sandalwoods lying in the Office premises of the petitioners on the ground that they were to be exported to China in the guise of handicrafts. 4.The learned counsel submitted that admittedly the petitioner has not exported the said Sandalwood but the same were lying in the Office premises of the petitioners and the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oom and on enquiry, petitioner Elangovan stated that they have purchased 2000 kgs of Sandalwood logs from the Forest Department and were planning to export the same to Chinna, and have filed a shipping Bill to export 214 kgs., and the same was pending with the Customs. 8.The 214.108 kgs. of Sandalwood which were declared as Sandalwood (handicrafts show piece) was taken up examination and the Development Commissioner (Handicrafts) was requested to inspect the cargo and certify whether the goods are Sandalwood (handicrafts). A committee was constituted to examine the issue and by report dated 11.2.2014, it was certified that the products do not qualify as handicrafts products. The quantity of 1786 kgs. of Sandalwood logs which were kep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government under the provisions of the Foreign Trade (Development and Regulation) Act 1992 and in the light of such prohibition, the goods are liable for confiscation under section 113 (d) of the Act. Further the conduct of the petitioners in filing the shipping bill dated 30.12.2013, for export of Sandalwood logs by mis-declaring them as Sandalwood handicrafts, there is every justification for issuing the show cause notice proposing to confiscate the same. Further, the Sandalwood logs were seized from the premises of the petitioners which is located within 50 kms., from the coastline of India and in terms of the Notification dated 7.1.1969 issued under section 11(h) of the Act, declaring as a specified area vulnerable for smuggling activit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent has called upon the petitioners to show cause as to why 1786 kgs., of Sandalwoods logs lying on the Office premises and which were to be exported to Chinna in the guise of handicrafts should not be confiscated under section 113 (d) of the Act. 14.The learned counsel for the petitioners argued that the Sandalwood logs were purchased through proper channel from the Forest Department after complying with all formalities. The said Sandalwood logs were not exported and the respondent has no jurisdiction to seize the logs which were lying in the Office premises of the petitioners. 15.It is not in dispute that the office premises falls within the 50 km., distance from the coast of India, which has been declared as an area vulnerable to sm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 2 of the Indian Trade Classification (Harmonious System ) as item whose export in any form is prohibited excluding finished handicrafts products of Sandalwood, machine finished Sandalwood products and Sandalwood oil. Admittedly, the 1786 kgs., are in the form of Sandalwood logs and export of such logs is prohibited. The prohibition which is in the form of notification issued in exercise of the powers under the Foreign Trade Development and Regulation Act would fall within the umberage of section 113 of the Act. Clause (d) of section 113 of the Act covers any goods attempted to be exported contrary to any prohibition imposed by or under the Act or any other law. Therefore, the respondents 1 & 2 were vested with jurisdiction to issue the im ..... X X X X Extracts X X X X X X X X Extracts X X X X
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