S. Kalyanam, Member (J)

1. The appeals are directed against the order of the Collector of Customs, Cochin, referred to supra, imposing a redemption fine of Rs. 25,000/- under Section 125 in lieu of confiscation of rosewood veneers and also a penalty of Rs. 5,000/- under Section 114 of the Customs Act, 1962, hereinafter referred to as the Act.

2. A consignment of 10 crates of rosewood veneers stacked in Ernakulam wharf for export under shipping bill No. 1699 dated 22.6.84 were seized by the authorities in pursuance of a search conducted in the business premises of M/s. United Veneers (P) Ltd., hereinafter referred to as 'appellants' on a reasonable belief that there was violation of the provisions of the Customs Act and Foreign Exchange Regulation Act. In a statement given before the Superintendent of Customs (Intelligence) on 10.8.1984, John Philipose, Chairman and acting Managing Director of the company (appellant in 98/85) stated that the quality of the veneers was not mentioned either in the contract or in other shipping documents, such as shipping bill, invoice etc. and the consignment was to be exported to one Takahashi Sholai of Japan for purposes of sale there. Since the