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Issues: Confiscation of vehicle used for transporting smuggled goods, penalties imposed on vehicle owners
In this case, the appeal was filed against an order confiscating a vehicle used for transporting contraband goods of third country origin. The customs authorities found small transistor and battery cells of foreign origin in the Tata sumo vehicle along with four individuals. The contraband goods were confiscated, and penalties were imposed on the vehicle owners. The appellants contended that the goods were not proven to be smuggled and did not claim ownership or produce any documents showing legal importation into India. However, since no ownership was claimed and no documents were provided, the goods were considered smuggled. The Tribunal upheld the confiscation of the vehicle under Section 115 of the Customs Act due to the driver's admission of lack of documents and the undisputed nature of the goods being contraband. Regarding the penalties imposed on the vehicle owners, it was noted that they had merely hired out their vehicle to individuals who later used it for transporting the contraband goods. The owners were in the business of renting out their vehicle for commuting purposes, and there was no evidence of their knowledge about the illegal use of the vehicle. As a result, the penalties imposed on the owners under Section 112 of the Customs Act were deemed unwarranted, and the Tribunal set them aside. The appeal was allowed partly, with the confiscation of the vehicle upheld but the penalties on the vehicle owners being overturned.
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