Case Law Details
Artisan’s Welfare Society Vs Commissioner of Customs (CESTAT Chennai)
The Artisan’s Welfare Society filed an appeal before CESTAT Chennai against the penalties imposed for attempting to export red sander wood in the form of pillar tops, in violation of the Customs Act and the Foreign Trade Act. The society contended that they were unaware of the nature of the wood used in the products and that the penalties were excessive.
Customs officials intercepted the goods during examination, suspecting the use of red sander wood. The society argued that they purchased the items from local traders, believing them to be made of country wood. They contended that they had no knowledge of the red sander wood used and attempted to export the goods as per the order.
The CESTAT acknowledged that the goods were liable for confiscation and that the society was negligent. However, they found no evidence of deliberate wrongdoing or false declarations. Thus, the penalties imposed under Section 114(i) and 114AA of the Customs Act were reduced.
CESTAT Chennai partially allowed the appeal, reducing the penalty imposed on the Artisan’s Welfare Society for attempting to export red sander wood. The decision highlighted the importance of penalties being proportionate to the offense and emphasized the need for awareness and diligence in export transactions.
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