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2.0 In pursuance to the above directions of the Honble High Court the appeal was heard and proceeding was recorded on 22.2.2016.

3.0 Investigation made allegation against the appellant noticing him to be involved with one Alexander in the attempted export of red sander covered by the impugned order. Summary of allegations was as under:

3.1 Shri John Alexander residing at No 75, Third Street, North Balabagya Nagar, Thatchanallur Road, Tirunelveli was the proprietor of M/s Freedom Impex. During March 2006 he attempted to export red sanders to Malaysia receiving that form one Manivannan. During 1995, 1996 he exported sandalwood of One Shri Santhanameeran of Chennai and exported the same declaring that as export of tiles, wash basin to Singapore in the name of M/s. Gilba Agencies, Tuticorin. In the month of February 1997, the sandalwood sent by Shri Santhanameeran to him from Chennai for export through Tuticorin, was seized by Customs officers for which he suffered penalty of Rs.10,00,000/- and has become defaulter to discharge such penalty.

3.6 Investigation found that above said preparations were made to commit attempt to export the red sanders of aforesaid description by Alexander under the instructions of the Appellant. Such goods are prohibited goods rendering that liable to confiscation under Section 114 (d), 113(e), 113(h) and 114(i) of the Customs Act, 1962. The gypsums board and other packing material having been used as cover in the cargo to conceal the offending goods (Red Sanders) were also liable to confiscation under section 119 of the Customs Act, 1962. For such act of attempt to export prohibited goods penalty proceedings were also liable to be initiated.

7.6 When the appellant was interrogated by the investigation, he categorically brought out his involvement in dealing with Red Sanders from the year 1999 with different persons and made export thereof. He stated to the investigation that having incurred huge loss in his garment business, he found that export of Red Sanders was easy mode to recover the loss. Accordingly he had exported Red Sanders in the name of M/s. N.K.R. Corporation from Chennai Port in the past. He also failed to rule out his intimacy with John Alexander of Tuticorin. Even though he attempted to detach himself in his statement from the attempted export of offending goods, he failed when entire governing facts and attendant circumstances imputed him to charge. He refused to reply on the statement of John Alexander recorded in the Central Prison of Madurai on 19.06.2006 apprehending his guilt. He was also arrested on 19.06.2006 under COFEPOSA for the offence of attempt to export the Red Sanders.

8.1 Procurement of red sander was not possible on the part of Alexander due to his unsound financial position which came to record. The appellant only made the procurement successful for his ill gain and employed Alexander as his conduit for export thereof. Attempt to export was made with hand in glove. Secrecy and stealth being covering guards of ill designed act, it is normally a hard task for Revenue to unravel every link of the process. However Revenue could successfully place circumstantial corroborative evidence to discard innocence of the appellant who proved his malafide submitting himself to the attempted export of prohibited goods.