Confiscation of Goods Attempted to be Improperly Exported u/s 113 FERA: CESTAT reduces Penalty to 5L [Read Order]

CESTAT Bangalore bench reduced penalty to Rs. 5 lakhs for attempted improper export of confiscated goods under Section 113 of the Foreign Exchange Regulation Act, 1947. Appellants Mr. Surendran and Mr. Ashok Shukla didn't dispute facts but claimed unawareness of goods' inferior quality or misdeclaration. \r

However, their actions—arranging containers, signing blank shipping bills, and misrepresenting employees—indicated complicity. Despite reliance on precedents, their unretorted irregularities led to penalty imposition under Section 114 of the Customs Act, 1962. \r

Considering canceled DEPB licenses and penalties on the exporter, the bench reduced the penalty to Rs. 5 lakhs each for both appellants, acknowledging their partial involvement but not absolving them completely. The appeals were partially allowed.