Page 258 - ELT_1st September 2020_Vol 373_Part 5

696 EXCISE LAW TIMES [ Vol. 373

the export documents and that they were cleared by the department officers after
assessment and examination. As per the description given in the documents, the
DEPB schedule under which they claimed credit matched. There is nothing on
record to show that the duplicate set of invoices which they prepared for the
overseas importers were presented before the Customs officers. Only subsequent
investigations by the DRI resulted in unearthing of the documents including the
duplicate set of invoices. We find that First Appellate Authority has not consid-
ered this aspect or given any findings thereon. As far as the confiscation under
Section 113 of the goods which have already been exported is concerned, we find
that this section reads as follows :
Section 113 in the Customs Act, 1962
113. Confiscation of goods attempted to be improperly exported, etc. - The
following export goods shall be liable to confiscation :
(a) any goods attempted to be exported by sea or air from any place other
than a customs port or a customs airport appointed for the loading of
such goods;
(b) any goods attempted or to be exported by land or inland water
through any route other than a route specified in a notification issued
under clause (c) of section 7 for the export of such goods;
(h) any goods which are not included or are in excess of those included in
the entry made under this Act, or in the case of baggage in the decla-
ration made under section 77.
(i) any goods entered for exportation which do not correspond in
respect of value or in any material particular with the entry
made under this Act or in the case of baggage with the decla-
ration made under section 77;
(ii) any goods entered for exportation under a claim for drawback
which do not correspond in any material particular with any
information furnished by the exporter or manufacturer under
this Act in relation to the fixation of rate of drawback under
section 75;
The term used in this section is export goods and not exported goods. Export
goods are defined in Section 2(19) as follows :
“export goods” means any goods which are to be taken out of India to a
place outside India;
During the relevant time Customs Act, 1962 extended to the whole of India [Sec-
tion 1(2)]. There was no extra territorial jurisdiction to the Customs Act during
the relevant period. A plain reading of Sections 1(2), 2(19) and Section 113 shows
that during the relevant period since the Customs Act extended only to the
whole of India and not beyond, action under this act could be taken only within
the country and not outside. Therefore, only the export goods, i.e., the goods
which are to be exported could be confiscated. There was no provision to confis-
cate the goods which have already been exported. Therefore, in the present case,
the First Appellate Authority was correct in setting aside the confiscation of the
goods under Section 113 as this section did not provide for such confiscation. As
the penalty under Section 114 is dependent upon the goods being held liable for
confiscation under Section 113 this penalty also does not sustain. Since the goods
cannot be confiscated under Section 113, the question of the order imposing a

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