2004 (12) TMI 238

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..... tion of goods already exported. Section 113 can be pressed into service only to confiscate goods which are attempted to be exported in violation of any of the prohibitions mentioned in the various clauses thereof. The confiscation order in respect of the subject goods is, therefore, bad in law. Consequently, the order of penalty on the exporter u/s 114 is not sustainable. In the result, we set aside the order of the Commissioner and allow the assessee's appeal with consequential reliefs if any. Consequently, the Revenue's appeal seeking enhancement of penalty gets dismissed. - HON'BLE P.G. CHACKO (J) AND JEET RAM KAIT (T), MEMBERS For the Appellant : S. Murugappan, Adv. For the Respondent : C. Mani, JDR Order P.G. Chacko, Memb .....

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..... Rs. 1 lakh was imposed on the party under Section 114 ibid. In their appeal, the assessee challenges the order of confiscation and penalty. On the other hand, in its appeal, the Revenue wants a higher amount of penalty to be imposed on the party under Section 114 ibid. 3. Heard both sides. Ld. Counsel for the assessee submits that the order of confiscation and penalty in relation to the export goods cannot be sustained inasmuch as, in respect of the imported goods, the entire dispute had been settled under the Kar Vivad Samadhan Scheme. According to ld. Counsel, any dispute relating to the import cannot be delinked from one relating to the corresponding export. Counsel further submits that goods already exported were not liable to confisca .....

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..... rted by sea or air...... . Clause (b) reads : any goods attempted to be exported by land on inland water .. . The rest of the clauses also read likewise. We have no doubt in our mind that, when the above provision was enacted, Parliament was conscious of the fact that goods already exported out of Indian territory was incapable of being confiscated. A significant contrast is noticeable in Section 111. The caption for Section 111 reads : confiscation of improperly imported goods... . Every clause of this Section uses the word imported and not the expression attempted to be imported . Parliament was, again, aware of the fact that any goods attempted to be imported were incapable of being confiscated on account of its being out of Indian terri .....

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