SAHIRA GARMENTS Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) These appeals are directed against confiscation of 135 packages of goods which had been entered for export under shipping bill No. 1285957 dated 5 -2 -2003 and imposition of penalty on the Prop, of the exporting firm, Shri Mohd. Illyas.

(2.) Brief facts of the case are that the aforesaid shipping bill was filed for export of 2900 pieces of ladies dresses and 9875 pieces of shirts. The FOB value of the consignment was declared at around Rs. 21 lakhs and drawback claim of about Rs. 5 lakhs was made. The consignment consisted of 135 packages. When the consignment was examined, it was found that packages at SI. No. 1 to 39 contained the declared goods while the remaining packages from SI. No. 40 to 135 were stuffed with old and used clothes/worn out clothing of different patterns, designs, fabric components etc. The Customs authorities issued notice for confiscation of the goods under Section 113(d) and (i) and penalty under Section 114(iii) of the Customs Act, 1962, Section 118 and 119 of the Customs Act were also invoked. In adjudication the Commissioner held that there was clear misdeclaration of goods with intent to fraudulently avail of draw back. He, therefore, confiscated the entire consignment including packages 1 to 39 which contained the declared goods under Section 113(d) and 113(i). With regard to the packages bearing SI. No. 1 to 39 it was specifically observed that these were "used as cover to conceal the real nature of the export consignment".

(3.) In the present appeal, the confiscation of the goods contained in packages at SI. No. 1 to 39 and imposition of penalty are challenged. Learned Counsel appearing for the appellant has contended that there was no justification for invoking Sections 118 and 119 of the Customs Act inasmuch as those Sections related to imported goods. He also contended that the confiscation of the correctly declared goods found in packages 1 to 39 was not legally justified in as much as Section 113(i) related only to goods found not to correspond to the export declaration. According to the learned Counsel, since the goods in packages were in conformity with the declaration, they should not have been confiscated at all. As regards penalty, it is the submission that the penalty of Rs. 1 lakh imposed on Mr. Mohd. Illyas is too high.