1986 (12) TMI 207 - AT - Customs

Conveyance - Seizure and confiscation of two trucks, liable to be set aside, when carriage of smuggled gold in the trucks less not proved

Issues Involved:
1. Confiscation of gold lagdies and Indian currency.
2. Confiscation of Matador bearing registration No. GRD 9003.
3. Confiscation of two trucks bearing registration Nos. NHT 552 and GTO 2917.

Detailed Analysis:

1. Confiscation of Gold Lagdies and Indian Currency:

The initial investigation revealed that contraband gold was being smuggled. Mohan Kalan Patel, the sarpanch of Tadgam village, admitted to receiving a gold jacket and handed over 38 gold lagdies to the Customs Officer, keeping two for himself. The Customs Officer did not draw any panchanama and distributed some gold lagdies among other officers. The Addl. Collector ordered the absolute confiscation of the gold lagdies and Indian currency based on these findings.

2. Confiscation of Matador Bearing Registration No. GRD 9003:

The Addl. Collector relied on the statements of Budhia Katia and Mohan Kalan, who indicated that the Matador was used to transport smuggled gold. Budhia Katia identified the Matador as belonging to Ambubhai B. Jadhav, brother of Baba Sheth. Mohan Kalan's statement corroborated this, stating he was taken in the Matador to recover the hidden gold lagdies. The Addl. Collector concluded that the Matador was used for transporting smuggled gold and ordered its confiscation under Section 115(2) of the Customs Act.

Separate Judgments on Matador Confiscation:

- Member (Judicial): Argued that Budhia Katia's statement was vague and unreliable, noting discrepancies in his age and the lack of direct evidence linking the Matador to the smuggling activities. He emphasized that no contraband goods were found in the Matador at the time of detention and set aside the order of confiscation.

- Member (Technical): Supported the confiscation, stating that Mohan Kalan's detailed and consistent statements, corroborated by the recovery of gold and currency, provided sufficient evidence. He dismissed the arguments about Budhia Katia's presence at a marriage and upheld the confiscation of the Matador.

- Third Member (Technical): Agreed with the Member (Technical), emphasizing that the vehicle was identified and used for transporting smuggled gold, thus justifying its confiscation.

3. Confiscation of Two Trucks Bearing Registration Nos. NHT 552 and GTO 2917:

The Addl. Collector relied on Budhia Katia's statement, which vaguely mentioned that the trucks were used for carrying contraband goods. However, no specific details or evidence were provided to establish that the trucks transported smuggled gold. The trucks were found empty at the time of detention. The Addl. Collector's decision to confiscate the trucks was based on the information provided by Customs officers, which was itself based on Budhia Katia's statement.

Separate Judgments on Truck Confiscation:

- Member (Judicial): Criticized the reliance on Budhia Katia's vague and uncorroborated statement. He argued that the trucks were not used for smuggling activities at the time of detention and set aside the order of confiscation.

- Member (Technical): Agreed with the Member (Judicial) on the trucks, noting the lack of detailed evidence and the nature of Budhia Katia's statement as intelligence rather than concrete evidence. He set aside the confiscation order for the trucks.

Final Order:

The appeal was allowed in part. The confiscation of the two trucks bearing Nos. NHT 552 and GTO 2917 was set aside, but the order of confiscation of the Matador No. GRD 9003 was confirmed based on the majority opinion.

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