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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
MS. JYOTI BALASUNDARAM, J.
Rare Crafts Overseas -Appellant
Versus
Commissioner of Customs, Chennai -Respondent
Final Order No. 893/2010 Appeal No. C/1/2010, 893 of 2010, 1 of 2010
Decided On : 12-08-2010
B. Satish Sundar, S. Krishnanandh,A.B. Niranjan Babu
Per Jyoti Balasundaram, Vice President : Vide the impugned order, the Commissioner of Customs (Export-Seaport) has held that Commissioner of Customs, Chennai has jurisdiction to issue show-cause notice dt. 27.3.2007 under the provisions of Section 124 of the Customs Act 1962 for confiscation of export cargo of red sanders wood in the guise of handicrafts to Singapore (red sanders wood is prohibited for export under the provisions of the Customs Act read with Schedule II of Export Policy and value added products of above wood are restricted for export under licence issued by DGFT subject to certificate from the Principal Chief Conservator of Forests of the State from where the stocks were procured as well as other requirements under CITES), proposing confiscation of items made of Padak and proposing imposition of penalty on the exporter, partnership firm and its partners and others.
2. The Commissioner's finding is reproduced herein below :-
"In terms of
(i) Sec 4 of Customs Act 1962, the Central Government may appoint such persons as it thinks fit to be officers of Customs
(ii) Vide notification 15/2002 Cus (N.T) Dated 07.03.2002 the areas of jurisdiction of Commissioner, Addl or Joint Commissioners and Dy. or Asst. Commissioners of Customs are notified. The territorial jurisdiction in respect of Commissioners (Export) -Seaport is mentioned at S.No.7 under column 2.
(iii) Sec 50 of the Customs Act'62 -
(1) The exporter of any goods shall make entry thereof by presenting to the proper officer in the case of goods to be exported in a vessel or aircraft, a shipping bill, and in the case of goods to be exported by land, a bill of export in the prescribed form
(2) The exporter of any goods, while presenting a shipping bill or bill of export shall at the foot thereof make and subscribe to a declaration as to the truth of its contents.
(iv) Sec 51 of Customs Act'1962, where the proper officer is satisfied that any goods entered for export are not prohibited goods and the exporter has paid the duty, if any, assessed thereon and any charges payable under this Act in respect of the same, the proper officer may make an order permitting clearance and loading of the goods for exportation.
(v) Procedures for Transshipment of cargo are given in chapter 11 of CBEC's Customs manual of instructions issued on 11.09.2001.
Under the heading "Movement of export cargo from port/ICD/CFS to gateway Port" vide:
Para 23 - The export cargo, after its clearance at a Port/ICD/CFS, may be carried in sealed containers to the gateway Port for export. Broadly, the procedure in this regard is as follows :
(a) …..
(b) …..
(c) …..
(d) …..
(e) …..
(f) At the gateway port, the containers are normally allowed to be exported under Customs supervision after checking the seals. In case seals are intact and documents are in order, no further examination of goods is undertaken. The Preventive Officer supervising the export of container endorses the port of shipment in both the transference copies. Steamer agent has to file EGM in duplicate.
(g) …..
(h) …..
(vi) Circular No.6/2002-Cus dated 23.01.2002 whereby export goods stuffed and sealed in ICBC case also be examined, specially when there is specific intelligence.
(vii) Under Section 7 of the Act under notification No.52/2006-Cus (NT), Chennai Seaport has been designated as Customs Area.
(viii) Section 141 of CA'1962 - all conveyances and goods in Customs areas shall, for the purpose of enforcing the provisions of this Act, be subject to the control officers of Customs.
Now, as per section 51 these are two aspects that a proper officer has to decide, one permitting clearance and the other loading of goods for exportation.
In the present case, the proper officer of Bangalore Customs has given only the "Let Export" Order meaning thereby permitted clearance for export. However, the second part i.e. loading of goods, order was not given by him. In terms of Para 23 (f) of "Movement of Export Cargo from post/ICD/CFS to ga
