2015 (6) TMI 614

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..... 'Ketamine Hydrochloride' valued at Rs. 70,00,000/-, was concealed in the guise of 'Onions'. They were stuffed in plastic packets resembling onion in size. DRI issued show cause notice dated 12.05.2009 to main exporter and to other co-noticees including to the appellants for confiscation and imposition of penalty under Section 117 of Central Excise Act for the acts of omission and commission. 3. The Commissioner of Customs (Export), Chennai in his order dated 18.11.2009 absolutely confiscated 'Ketamine Hydrochloride' and imposed penalty on the exporter of Rs. 10,00,000/-, Rs. 10,00,000/- on the CHA firm M/s. Manohar Enterprises, Rs. 5,00,000/- on Shri Muthuramalingam, partner of CHA and Rs. 1,00,000/- on Shri Sivaku .....

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..... ing authority. She submits a copy of the letter dated 05.03.2014 and the reply from the Commissioner of Customs dated 10.04.2014. She relied on the decision of the Hon'ble Supreme Court in the case Saini Consultants Vs. Cestat - 2013 (293) ELT A25 (S.C.). 6. Heard both sides. 7. On perusal of the records, I find that the short issue involved relates to imposition of penalties on the appellants ie., CHA in connection with smuggling of 'Ketamine Hydrochloride' concealed in the export consignment as 'Onions' vide shipping bill No. 3201809 dated 10.11.2008. On perusal of the show cause notice dated 12.05.2009 and the impugned order dated 18.11.2009, wherein modus operandi involved in exporting the banned item 'Ketamine .....

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..... they are not liable for any penalty is not acceptable for the simple reason that any act of their employee, CHA cannot absolve from their liability. Further as already discussed above, this is not the case where the penalty has been imposed on the appellants under Section 114 of the Customs Act, in their case penalty is imposed under Section 117 of the Customs Act and this section envisages penalty for any contravention which is not covered in any other section ie., Sections 28, 112, 114 of the Customs Act. If any person is colluded, abetted, or any contravention in connection with smuggling of goods in the case of smuggling out detract goods liable for confiscation under Section 113 of the Customs Act and penalty under Section 114 of the C .....

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