J Uthaman Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that penalty under section 114 of the Customs Act not sustained in absence of proof of mens rea since establishing mens-rea is also a prerequisite to attribute attempt. Accordingly, penalty imposed is deleted.
Facts- Laxmi Fabrics, a proprietorship firm who had declared themselves as a manufacturer exporter is engaged in import of raw silk yarn and plain silk fabrics and in export of printed silk fabrics / made-ups. Laxmi Fabrics obtained advanced authorisation or Duty Exemption Entitlement Certificate (DEEC) and Duty Free Import Authorisations (DFIA) to import goods duty free.
Based on the intelligence, officers of DRI, Bangalore intercepted a live export consignment submitted for export by Laxmi fabrics at CWC, ICD, Bangalore under Shipping Bill dated 18.01.2013 after customs clearance, and before the consignment was loaded for export. On examination, finding the said consignment to be assorted use / old textile materials and made-ups of various sizes and colours, i.e. of ‘rags’, as against the 100% natural silk printed fabrics declared in the shipping bill and export invoice, it was seized. The investigation entailed searches and recording of statements of Shri Shyam Sunder Sureka, Proprietor of Laxmi Fabrics, as well as that of Shri Uthaman, Assistant Manager – Operations, Air Cargo Helpers, an appellant herein as well as that of Shri C P Ravindran, Branch Manager, of M/s Air Cargo Helpers; the said Air Cargo Helpers also being an appellant before this forum.
