TMI Blog2015 (6) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... hava Sheva Port. This clearly shows that the present Appellants whose role was to arrange and provide the empty container for export goods, cannot be implicated in the act of smuggling of Red Sanders. However, the Appellants have knowingly about the Public notice No. 17/2012 not complied the KYC norms of the person Shri Rohit Mahadik who placed order for container. Employees have deliberately for their vested committed an act to make the goods liable for confiscation. From the nature of the offence committed in the present case, when the penalty is imposed on the companies, penalties on the employees are not warranted. As regard penalties on the Appellant companies, I find that in view of the role of the companies, the lapse is only con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.5,00,000/- under section 114(i) (d) C/89914/14-MUM Shri K Venugopal Rs.5,00,000/- under section 114(i) The fact of the case is that M/s. Akanksha Packs, Plot No. F-66, MIDC, Waluj, Aurangabad (manufacturer of corrugated boxes of plastic and paper) had obtained an order from Elite Trading Est. Dubai for export of corrugated boxes and also received an advance payment through SBI, Industrial Finance Branch, Ktanti Couk, Aurangabad by way of swift transfer (i.e. from Bank to Bank). Shri Anil Satyanarayan Loya, partner of M/s. Akanksha Packs in his statement clarified that Mr. Shantanu Pawar was the buyer, in this case, who had requested him that his co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed representative of the Shipping line M/s Freight Connection India Pvt. Ltd. and Shri Rajan Sawant, representative of the Speedy CFS. The examination of the container revealed that the front portion of the container was stuffed with 74 packages corrugated boxes but behind the corrugated boxes, logs of Red sanders (11505 Kgs) were found. 11505 Kgs of Red sanders were seized under panchanama dated 05.10.2012 on a reasonable belief that the same were liable to confiscation under the Customs Act, 1962 as export of Red Sanders was prohibited. 74 packages of corrugated boxes were also liable for confiscation under the Customs Act, 1962 as these goods had been used to conceal Red Sanders. The representative sealed samples of the Red Sanders were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposed if the person does or omits to do any act which act or omission would render such goods liable to confiscation under Section 113 or abets the doing or omission of such an act. In the present case, the Appellants' role is limited to providing container that too for the permissible export goods i.e. Corrugated Boxes and not for Red Sanders, therefore the Appellants have neither omitted to do any act not abetted the doing any such act, hence cannot be made responsible as regard smuggling of Red Sander, therefore, they cannot be penalised under Section 114(i). In support of his defence, the Ld. Counsel placed reliance on the following judgments: (a) Skyline Shipping Logistics Vs. CC., Chennai [2010 (262) E.L.T. 985 (Tri-Chenna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ava Sheva Port. This clearly shows that the present Appellants whose role was to arrange and provide the empty container for export goods, cannot be implicated in the act of smuggling of Red Sanders. However, the Appellants have knowingly about the Public notice No. 17/2012 not complied the KYC norms of the person Shri Rohit Mahadik who placed order for container. The said public notice clearly instructs the container lines, shipping line, freight forwarders, agents, sub agents etc. to follow the Know Your Customer (KYC) norms of the exporter/person seeking the container for stuffing of export cargo. The sole objective of the circular is to avoid smuggling of prohibited goods, especially Red Sanders. Therefore, by not following the KYC norm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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