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TMI Blog2023 (7) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... rant and is not aware that these goods are prohibited for export. The penalty imposed is disproportionate and excessive as the confiscated goods were valued at Rs.33,90,000/-- only. In order to meet the ends of justice in this case, we feel it appropriate that the penalty imposed is reduced to Rs.5,00,000/-- under Section 114(i) of the Customs Act - Appeal allowed in part. - CUSTOMS APPEAL No. 41494 OF 2013 - FINAL ORDER No. 40590 / 2023 - Dated:- 20-7-2023 - HON BLE MS. SULEKHA BEEVI C. S. , MEMBER ( JUDICIAL ) HON BLE MR. VASA SESHAGIRI RAO , MEMBER ( TECHNICAL ) Mr. S. Murugappan , Advocate For the Appellant Mr. R. Rajaraman , Assistant commissioner ( A. R ) For the Respondent ORDER ORDER : Per Mr. VASA SESHAGIRI RAO Brief facts are that the appellant filed shipping bill dt. 09.12.2011 through the CHA for export of cupboards, pillar tops, table, book shelf, and wooden pillars . The value of goods was declared as USD 6420 CIF and the same were sought to be exported to M/s.Southeast Packaging Printing Development Co Ltd., China by filing free shipping bills without claiming any export incentives. Based on specific intelligence, the officers of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. It can be seen from the perusal of statement of Sri V. Ramesh made on 13.02.2012 that the pillars were purchased in and around Karaikudi where these pillars were dismantled from old houses; that he initially thought that these were made up of country wood and the carpenter who worked in their society stated that these items were made of country wood only. Therefore, the appellant decided to export the pillars to his customer in China; that at the time of purchase itself, these pillars were painted black and he did not make any alteration and these pillars were to be exported as such. It is argued by the Ld. Counsel that it is an admitted position that the pillars in question were purchased in and around Karaikudi where these pillars were dismantled from old house in that area. The show cause notice does not attribute any knowledge on the appellant as to the species of the wood. Show cause notice also does not allege that the appellant with such knowledge has deliberately attempted to export the goods. Further, there is no contradiction in the statement of Sri V. Ramesh and Sri M. Sirasudheen and they have stated that the pillars were purchased from dismantled houses in and arou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. On perusal of the records in the appeal, it is clear that there was an attempt to export Red Sander Wood in the form of pillar tops which were painted black in contravention of the prohibition imposed under the provisions of the Customs Act and the Foreign Trade (Development Regulation) Act, 1992. The exporter s contention that these goods are only restricted and not prohibited is not acceptable in view of the statutory provisions of the Foreign Trade (Development Regulation) Act, 1992 as extracted below:-- c) Schedule 2 of ITC (HS) gives the item wise export policy. Sl. No. 154 of the Schedule details the export policy with regard to red sanders wood in any form. The export policy provides that the export of red sanders is prohibited . The nature of the restriction is described as not permitted to be exported . Sl. No. Tariff Item HS Code Unit Item Description Export Policy Nature of Restriction 154 44039918 44079990 m3 (a) Red Sanders wood in any form, whether raw, processed or unprocessed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir society had said that these items were made of country wood. He has named only one trader viz., Mr. M. Sirasudheen form whom he had purchased a miniscule number of prohibited goods but he failed to name other traders who supplied major quantity of these goods. A scrutiny of the shipping bill and the invoice connected with this consignment indicate that the entire value of the export consignment is an account of the wooden pillars. It is also interesting to note that in the packing list, he has indicated the list of items exported as given below:-- Description of goods Qty. Unit Price Amount in USD Teakwood Cupboard 9 151.11 1360 Pillar Tops 270 2.91 785.7 Teakwood Table 2 95.15 190.3 Teakwood Book Self 4 130.21 520.85 Wooden Pillars 137 22.4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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