K.V. SHIVARAJ Vs. CESTAT, CHENNAI

JUDGEMENT

(1.) This Civil Miscellaneous Appeal is directed against the order made by the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai, in Final Order No. 40782/2016, dated 18-5-2016.

(2.) The facts lie in a very narrow compass. The petitioner has obtained an Import Export Code (in short "IEC"), but, however, since he could not carry on the import and export business fruitfully, permitted the IEC to be used by a person known to him (very closely) and that too for a consideration, though for a very insignificant amount.

(3.) A shipping bill for export has been lodged on 23rd November, 2009, in the name of the appellant herein and the Customs House Agent being M/s. Anchorage Shipping, Coimbatore. The goods intended to be exported are described as 'Incense Raw Material' of 20.50 Metric Tonnes. Upon verification of the goods, a suspicion has arisen as to whether the goods are raw material of incense sticks or under the guise of the said description and classification, prohibited goods are being exported. Fifteen sample packets were collected and five of them have been sent for examination and for reporting by the Institute of Wood Science and Technology (IWST), Indian Council of Forestry Research and Education, Malleswaram, Bangalore. Mercifully, the said institute had cleared the air that the samples collected are totally different from Red sanders. Red sanders are completely an export prohibited item. But, however, in terms of Chapter II of the Foreign Trade (Development and Regulation Act), 1992, the Central Government has announced an Export and Import Policy and as per the said policy, in the list of goods prohibited for export, wood and wood products in the form of logs, timbers, stumps, roots, barks, chips, powder, flakes, dust, pulp and charcoal, except saw timber made exclusively out of imported teak logs/timbers, subject to conditions, are included against the 7th entry. Thus, wood power, wood chips, flakes of wood and wood-dust stand prohibited from being exported.