Legal principle

Misdeclaring an export to hide prohibited goods is punishable under Sections 132 and 135; the higher seven-year limit under Section 135 applies only to goods covered by Section 123.

Court decision

The revision was allowed only on sentence. The conviction under Sections 132 and 135 was confirmed. The prison term was reduced to the period already served (six days). Fines were set at Rs.50,000 under Section 132 and Rs.1,00,000 each under Sections 135(1)(a), (b) and (c), total Rs.3,50,000. The remaining Rs.2,50,000 must be paid within six weeks, failing which default sentences apply.

Facts

On 08.08.2005, the Docks Intelligence Unit at Chennai Port intercepted a container under Shipping Bill No.2124658 dated 03.08.2005 filed by M/s. Archana Exports, declared as Granite Cobble Stones for Malaysia. It held 377 Red Sander wooden logs weighing 13320 kg, a prohibited export item. P. Baskar Naidu, who ran the firm, said in his Section 108 statement he did not know how the logs got in. The Commissioner confiscated the logs and imposed a Rs.10 lakh penalty. In prosecution, the Magistrate convicted him under Sections 132 and 135(1)(a), (b) and (c) of the Customs Act, and the Sessions Court confirmed this on 08.12.2016. He filed a criminal revision in the Madras High Court.

Key provisions

• Section 132, Customs Act, 1962 —  False declaration, false documents,etc
• Section 135(1), Customs Act, 1962 — Evasion of duty or prohibitions