J.J. TRADING CORPORATION Vs. CC

JUDGEMENT

(1.) THIS appeal arises from Order -in -Original No. 146/92 dated 21.10.1992, ordering for absolute confiscation of 10 MTs of Sandalwood chips valued at Rs. 21,20,000/ - absolutely under Section 113(d) read with other provisions as detailed in the findings given by the Commissioner of Customs and also under Section 113(i) of Customs Act. There is a penalty of Rs. 2,00,000/ - under Section 114(i) of Customs Act on the appellants represented by the partner.

(2.) THE appellants had obtained licence to export the impugned goods and they filed shipping bill No. 03508 dated 15.07.1992 seeking to export the impugned goods packed in 200 gunny bags/packages. Acting on intelligence that the certificate of origin and transport permit in Form No. II submitted by the appellants are not genuine but forged documents, the department investigated the matter. The appellants have claimed to have purchased the goods from M/s. Divya Impex Corporation, Hyderabad, who had issued a letter indicating the sale of goods to the appellants. The certificate of origin (issued under the export trade control) by the Govt. of Andhra Pradesh, Forest Department filed by the exporters in connection with the above export was in the name of M/s. Divya Impex Corporation, Hyderabad and it was stated therein that the source of origin was from the private source (as distinct from Government source) viz. Sri R.S. Ramanujam Kodur, Andhra Pradesh. The certificate was purported to have been issued by the Chief Conservator of Forests, Andhra Pradesh under his signature dated 7.2.1992 under the office seal of the signatory. The transport permits filed in addition in Form No. II in the name of Sri S. Srinivasa Reddy, M/s. Divya Impex Corporation, Hyderabad for a total quantity of 10 MTs of Sandalwood chips purported to have been issued under the signature dated 24.7.1992 of Divisional Forest Officer, Rajampet, Andhra Pradesh bearing the official seal of the signatory.

(3.) ON investigation, it was discovered from the O/o Principal Chief Conservator of Forests, Andhra Pradesh vide his letter dated 05.8.1992 that no such certificate of origin was issued by them and that the signature appearing thereon is not of any of the Chief Conservators of Forest working in their department, therefore, the appellants attempt to export the goods was brought under investigation and show -cause notice was issued alleging mis -declaration and contravention of Rules framed under Tamil Nadu Sandalwood Transit Rules, 1967. The Commissioner has concluded that the certificate of origin is valid only for exports by the named consignor to the particular ultimate consignee, whose name and details should be furnished to the Principal Chief Conservator of Forests, Madras, before seeking for certificate of origin of procurement. He has noted that the transfer of certificate with or without the permission of the Principal Chief Conservator of Forests, will render it null and void. He has noted that the named consignor M/s. Kannan and Company alone can validly operate on the above certificate of origin, which is not issued in the name of M/s. J.J. Trading Corporation, who seek to export the goods under the said shipping bill. He has noted that the appellants had admitted that the forest authorities were not prepared to extend the validity period of the certificate of origin in favour of M/s. Kannan and Company beyond 31.5.1992. He has noted that in these circumstances, action to effect the shipment was not pursued by the exporters M/s. JJ. Trading Corporation under shipping bill No. 1008 dated 6.5.1992. He has noted that the shipping bill has not so far been sought for by them to be cancelled till date. Further he has noted that this shipping bill is not the subject matter of the present adjudication though a reference has been made to it by the party. He has noted that the letter of credit which already stood extended up to 30.5.1992 was further extended and the firm M/s. J.J. Trading Corporation went on getting further extension as late as up to 7.9.1992, before which they filed the present shipping bill bearing No. 3508 dated 15.7.1992 attempting export of 10 MTs of Sandalwood chips as an account party of M/s. Divya Impex Corporation, Hyderabad, declared as exporter. He has noted that in the circumstances of the case, the said certificate of origin is a forged one and hence the export was unauthorised one as also because the licence issued in the name of M/s. J.J. Trading Corporation, who were seeking to operate on account of some other export firm, which is only fictitious firm and figment of imagination brought into existence for an illicit purpose as analysed in the impugned order. He found violation of Rule 3 of the Tamil Nadu Sandalwood Transit Rules, 1967 and as a result there was a violation of Section 113(d) for the purpose of confiscation of goods and hence, ordered for the same and imposed penalty. The Commissioner rejected the prayer of the appellants that they were under bona fide belief that the certificate of origin issued by M/s. Divya Trading Corporation was a genuine and not fabricated.