Mis-declaration of the goods in the export container and clandestine removal of goods in the DTA

PJ/Case Law/2019-2020/3609

Kanishk Overseas Private Limited F.No. 1/92/171/48/AM-20/PC-VII/346 Dated 28.02.2020
Issue: Mis-declaration of the goods in the export container and clandestine removal of goods in the DTA
Brief facts:The appellant has obtained a Letter of Approval for warehousing service activities in KASEZ. The appellant have cleared goods for export under shipping bill No. 1007823 dated 20.05.2019. On receipt of information from DRI, AZU, the port authority has examined the container and observed that out of the declared quantity of 10185 Pcs, total 5085 Pcs of various types of Proteins found short in the said container during the investigation. Total shortage of goods was found 4421 Pcas valued about Rs.1928126 from the said container. In addition 277 Pcs were also found short in their stock.
Applicant Contention’s:The appellant has admitted the above shortage was due to diversion of goods in to DTA but they paid the customs duty plus penalty import by Customs. The DC has imposed a harsh penalty on us and its director; a lenient view may be taken against us. Shortage is also due to fact that staff did not take proper care of quantity loaded in the container.
Respondent Contention’s and reasoning:The appellant is working under SEZ area and SEZ work under the trust based regime. They are given certain facilities and procedural exemption and relaxation on the basis of self certificate. The duty of unit and its proprietor/director to maintain the trust bestowed on them and work a manner upholding the supremacy of the law of land. In the present case, the appellant is trying to export short quantity of goods as compared with shipping bill. The goods were cleared to DTA for illegal gains. Hence, the director have breached law and mis-declared the quantity for export in container and shortage goods is removed clandestine to DTA with an intention to defraud the Govt. Revenue.
Order:The appellant authority has dismissed the appeal filed by appellant on ground that the appellant has mis-declared the quantity for export in container and shortage of goods is removed clandestine to DTA with intentionally.
Comments:The appellate authority has breached the section of 25 of SEZ act. According to above section, the penalty is rightly imposed by the adjudicating authority on the appellant.

Prepared by - Vijay Singh

Comments

PJ/Case Law/2019-2020/3609

Post a Comment

Query