Order date – 5 December 2022

Facts –

• The Appellant, M/s. Geotrans Maritime & Logistics was served with Show Cause cum Demand Notice dated 22.06.2010 issued under Section 124 of the Customs Act, 1962  involving seizure of Red Sandal Wood weighing 3120 Kgs. recovered from a container No.CRXU-2443114 (20’) attempted to be exported out of India.
• The adjudicating Additional Commissioner imposed penalty of Rs.5.00 Lakhs on the Appellant under Section 114(i) of the said Act apart from ordering confiscation of the seized goods and imposing penalty on the clearing agent firm. A penalty was also imposed on the Director of the appellant company.
• Being aggrieved the appellant filed an appeal.

Issue –

• Whether the imposition of penalty of Rs.5.00 Lakhs each on the Company as well as on the Director under Section 114(i) of the Customs Act, 1962 are in order?

Order –

• The Tribunal finds that as per the voluntary statement of the Director, the Appellant is neither a Customs Clearing Agent nor an exporter/importer. The Appellant’s main business activities remain restricted to the booking of empty containers as per the requirement of the exporter and in appropriate cases merely suggested the suitable Clearing Agent to facilitate their export and with this their activities come to an end.
• The Tribunal also finds that the Department proceeded against the Appellant on the ground that they failed to bring forward the real exporter and thereby abetted and connived with the exporter in the attempt of illegal export of prohibited goods.
• It finds that in the present electronic era, procuring orders and conducting business activities online taking advantage of internet facility is a normal phenomenon. The allegations of abetting in the attempted illegal export of prohibited goods are not supported by any direct, corroborative or cogent evidence. The entire proceedings against the Appellants have been framed on the basis of assumption and presumption without conclusively establishing any direct nexus between the Appellants and the exporter.
• In view of the above discussion, the impugned order is modified to the extent of setting aside of penalty of Rs.5.00 Lakh each imposed under Section 114(i) of the Customs Act, 1962 on M/s.Geotrans Maritime & Logistics Pvt. Ltd. and its Director Shri Tirthankar Chakraborty
• Hence the appeal is allowed.