JUDGMENT :

S. Vaidyanathan, G. Jayachandran, JJ.

(Prayer in both the C.M.As: Civil Miscellaneous Appeals filed under Section 35G of the Central Excise Act, 1944, against the final order Nos.40134/2014 and 40133/2014, dated 24.01.2014, in Appeal Nos.C/189/2011 and C/179/2011, respectively, passed by the Customs Excise and Service Tax Appellate Tribunal, South Zonal Branch, Chennai.)

1. These two appeals are arising out of the common order dated 24.01.2014, viz., one dismissing the appeal filed by the appellant herein against the imposition of penalty of Rs.3,00,000/- and another against the order of the CESTAT allowing the appeal of the Department for enhancement of penalty and thereby, enhancing the penalty from Rs.3,00,000/- to Rs.5,00,000/-.

2. Since the facts and law involved in both the cases are one and the same, both the Civil Miscellaneous Appeals are taken up for final disposal and common order is passed as below.

3. Based on the specific intelligence gathered by the Directorate of Revenue Intelligence [D.R.I.] that red sanders logs were smuggled out of India in a container bearing No.VMLU 3200873 covered under Shipping Bill No.1955099, dated 09.07.2008 along with Annexure - A signed by the appellant herein. The said container was immediately recalled. However, the container, which had already sailed to Malaysia on 14.07.2008, was examined and found containing Red Sanders and therefore, sent back to Tuticorin. The same reached Tuticorin Port on 10.08.2008. The enquiry conducted revealed the fact that shipping bill was prepared in Custom House by one R.Sivaraman of M/s. Vishal Enterprises, Tuticorin. The statement of R.Sivaraman revealed that the Customs House Agents Licence of M/s. Vector Freight Forwarders was used by them for preparing the shipping bills and the container was stuffed with red sanders mis-declaring it as Coco Peat at the instance of one J.Francis Kumar, Marketing Executive of M/s. Sai Freight Private Limited, Tuticorin. The further investigation revealed that the shipping bill prepared by him on obtaining the signature of Customs House Agent [CHA] through Shri G.Ravi of M/s. Vector Freight Forwarders [the appellant herein].

4. According to the appellant, G.Ravi was their employee operating at Tuticorin and blank Annexure – A was handed over to him, since the appellant was operating from Coimbatore and six Annexures were required at Tuticorin. The show cause notice dated 27.01.2009 was served on Muthu and George by D.R.I. under the Customs Act, 1962 and the Foreign Trade (Development and Regulation) Act, 1992 to the persons involved in illegal export of 10.760 MTs. of Red Sander logs to Malaysia. The appellant herein is one among them. After enquiry, penalty of Rs.10,00,000/- was imposed on the appellant under Section 114(i) of the Customs Act, 1962, vide order dated 30.08.2010. Aggrieved by the order passed by the Additional Commissioner, Custom House, Tuticorin, the appellant herein preferred statutory appeal before the Commissioner, Customs and Central Excise (Appeals), Tiruchirappalli, in Appeal No.15 of 2015. In the appeal, the penalty of Rs.10,00,000/- was reduced to Rs.3,00,000/-, by order dated 28.02.2011.

5. The appellant herein preferred further appeal in C/Appeal No.179 of 2011 before the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Branch, Chennai [CESTAT] against the imposition of penalty under Section 114(i) of the Customs Act. Being aggrieved by the rejection of penalty, the Customs Department preferred an appeal in C/Appeal No.189 of 2011.

6. These two appeals along with the appeals filed by the other persons were taken up for consideration by the CESTAT and an order was passed on 24.01.2014 holding that the penalty of Rs.3,00,000/- imposed on the appellant is very low and it is liable to enhanced to Rs.5,00,000/-. Thus, the appeal filed by the Revenue was partially allowed and the appeal filed by the appellant herein was rejected. Being aggrieved by the said order, the prese