2003 (10) TMI 462 - AT - Customs

Summary

Issues:
1. Imposition of penalty on transporters by the Commissioner of Customs.
2. Allegations of knowingly transporting seized goods liable for confiscation.
3. Dispute over carrier's knowledge of contraband nature of goods.
4. Lack of evidence supporting penalty imposition.
5. Legal principle of suspicion not substituting evidence in penalty cases.

Analysis:
1. The case involves an appeal by transporters against a penalty of Rs. 1 lakh imposed by the Commissioner of Customs. The Commissioner found the transporters to be knowingly involved in transporting seized goods liable for confiscation under the Customs Act, leading to the penalty under Section 112.

2. The facts of the case are undisputed, involving the detention of a consignment containing Mink Fabrics of Korean origin. The consignment was detained by Customs officers at the carrier's premises, leading to an investigation resulting in the confiscation of the fabrics valued at Rs. 21,34,300 and the imposition of a penalty on the transporters.

3. The transporters argued that as public carriers, they were unaware of the contraband nature of the goods booked by an unknown party. They highlighted the lack of prior knowledge, normal freight charges, and the absence of evidence showing their awareness of the contents. The carrier's defense focused on the fact that the consignment was booked on a "SELF" basis, and they could not identify the consignor or consignee.

4. The judgment refuted the Commissioner's finding, stating that the carrier's actions were based on a declaration and did not indicate prior knowledge of the goods' nature or liability for confiscation. The penalty was deemed to be imposed on presumption rather than concrete evidence, leading to its setting aside by the Tribunal.

5. The legal principle emphasized was that suspicion, no matter how grave, cannot replace evidence in penalty cases. The judgment highlighted the lack of evidence demonstrating the transporter's prior knowledge of the goods' nature or confiscation liability, leading to the decision to set aside the penalty imposed by the Commissioner.