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Issues:
1. Imposition of fine in lieu of confiscation of a lorry under Section 125 of the Customs Act, 1962. 2. Applicability of Section 115(2) of the Act in the case. 3. Liability of the owner of the vehicle and the driver regarding the attempted illegal export. 4. Confiscation proceedings and liability of the vehicle under Section 115(2). 5. Interpretation of Section 115(2) in relation to the facts of the case. 6. Evidence regarding the knowledge and involvement of the owner, agent, and person in charge of the conveyance. 7. Role of Sultan in directing the driver and implications on confiscability of the vehicle. 8. Examination of Kattuva Maideen and its impact on the case. 9. Adequacy of precautions taken by the owner against misuse of the vehicle. Analysis: The appeal challenges an order imposing a fine in lieu of confiscation of a lorry under Section 125 of the Customs Act, 1962. The Customs Preventive Officers seized Indian textiles valued at Rs. 50,000 meant for illicit export, loaded from a lorry onto a van. The owner of the goods admitted to the illegal activity. The key issue revolves around the applicability of Section 115(2) of the Act, determining the liability of the owner and driver regarding the attempted illegal export. The appellant argued that the vehicle should be released without a fine as neither the owner nor the driver had knowledge of the illegal activity. The respondent contended that the owner's brother, Sultan, directing the driver, should render the vehicle liable for confiscation. The respondent also emphasized that confiscation proceedings are in rem and require reasonable precautions to be proven by the owner. The judgment delves into the interpretation of Section 115(2) in the context of the case. It highlights that the owner and driver were found unaware of the smuggling, absolving them of liability. The adjudicating authority observed that neither the owner nor the driver had knowledge of the illegal activity, leading to the conclusion that the vehicle should be released without a fine. The involvement of Sultan in directing the driver was analyzed, with the judgment emphasizing that Sultan's actions did not make him a person in charge of the conveyance under Section 115(2). Moreover, the absence of evidence against Kattuva Maideen, who looked after the vehicle, was noted, questioning the adjudicating authority's finding regarding his involvement. The judgment scrutinized the precautions taken by the owner, pointing out that strict instructions were given to prevent unlawful use of the vehicle. Ultimately, the court concluded that the vehicle was not used for smuggling with the knowledge of the owner or her agent, rendering it non-confiscable under Section 115(2). As a result, the impugned order was set aside, and the appeal was allowed.
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