Custom, Excise & Service Tax Tribunal
M/S.Skyline Shipping & Logistics vs Commissioner Of Customs, Chennai on 26 February, 2010
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
Appeal No.C/104/2007
[Arising out of Order-in-Original No.5693/2006 dated 26.12.2006 passed by the Commissioner of Customs, Chennai]
M/s.Skyline Shipping & Logistics
Appellants
Versus
Commissioner of Customs, Chennai
Respondents
For approval and signature:
Honble Smt. Jyoti Balasundaram, Vice-President
1. Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? :
2. Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? :
3. Whether the Members wish to see the fair copy of the Order? :
4. Whether Order is to be circulated to the Departmental Authorities? :
Appearance :
Dr. Sunitha Sundar, Adv.
Shri C. Rangaraju, SDR For the Appellants For the Respondents CORAM:
Honble Smt. Jyoti Balasundaram, Vice-President Date of hearing : 26.02.2010 Date of decision : 26.02.2010 Final Order No.____________ The brief facts of the case are that on 03.07.2005, a team of officer of Docks Intelligence Unit, Customs House, Chennai, intercepted a container found stacked at the stock yard of Chennai Container Terminal Ltd. The container was consigned to a party in Hong Kong from M/s.Mahesswari Exports, Salem, Tamilnadu and was kept for loading on to the vessel. The goods sought to be exported was declared as Potassium Feldspar Lumps and the CHA was M/s.Patriot Freight Logistic System; the container was examined in the presence of the representatives of the Steamer Agent and some scratch marks on the right side were noticed door and also the rivets of the handles were found to be tampered with; the Customs OTL seal and Steamer Agent OTL Seal were found to be intact. On opening the container, Red Sander Logs were found stacked instead of the declared cargo. The container was found to have been delivered to M/s.Skyline Shipping & Logistics (the appellants herein) for the export of Feldspar to Hong Kong on the ongoing vessel. A statement of the Manager of the appellant was recorded on 06.07.2005 in which he stated that one Shri Siva, who was known to him for the past 2 months, orally requested for a container; he supplied the said container procured from the Steamer Agent M/s.PIL (India) Pvt. Ltd., on the basis of export documents shown to him but without any written requisition either from the Customs House Agent or from the exporter. The stuffing of the consignment was found to have taken place at M/s.Radha Minerals, Porur on 02.07.2005. The premises of the consignor, namely, M/s.Maheswari Exports, Salem was searched and the Proprietor denied that he had any connection with the subject shipping consignments where the export documents were in the name of his proprietary concern. Further investigation was carried out from which it transpired that shipping bill was filed by Shri S.Sivakumar after getting signature from the authorized CHA on the basis of bogus export documents in the name of M/s.Maheswari Exports, Salem; the declared cargo was removed enroute to the harbour at an unknown place and the prohibited cargo of Red Sander Logs was substituted. The Red Sander was alleged to be liable to confiscation along with container used therefor and the trailer, and M/s. PIL (India) Pvt. Ltd., and M/s.Skyline Shipping and Logistics Pvt. Ltd. were alleged to have abetted, attempted illegal exports of Red Sander Wood Logs and hence liable to penalty; Proprietor of M/s.Patriot Freight Logistics System was also held to have been guilty of abetement and M/s. Skyline Shipping and Logistics Pvt. Ltd. and two others who were directly involved in the attempted illegal export of Red Sanders were held to be liable to penalty. Show-cause notice was issued on the basis of the above, proposing confiscation of the Red Sanders and the container and the trailer and proposing imposition of penalty on all persons involved in attempt to illegal export Red Sander Wood Logs. The notice was adjudicated by the Commissioner who ordered absolute confiscation of the Red Sander Wood Logs and ordered confiscation of the trailer with an option of redemption on payment of a fine and also imposed penalties on all the noticees. The penalty on the present appellant is Rs.50,000/-.
2. I have heard both sides on the appeal of the appellant against imposition of penalty. Except for a finding that the appellants supplied the empty containers to M/s. Skyline Shipping and Logistics Pvt. Ltd. without any requisition from the CHA or the exporter there is no material on record to come to the conclusion that the appellant had in any way abetted the offence in attempting to illegally export Red Sander Wood Logs Therefore, he cannot be held liable to penalty under Section 114(1) of the Customs Act. I, therefore, set aside the penalty and allow the appeal. (Dictated and pronounced in open court) (JYOTI BALASUNDARAM) VICE-PRESIDENT ksr 02-03-2010 ??
??
??
??
1 2