1988 (6) TMI 158 - AT - Central Excise

Summary

Issues:
Confiscation of bus under Section 115(2) of the Customs Act, 1962 and redemption fine.

Analysis:
The case involved the confiscation of a bus under Section 115(2) of the Customs Act, 1962, with a redemption fine of Rs. 10,000. The appellants challenged this order. The appellants argued that the bus, owned by a proprietary firm, was not liable for confiscation as the owner and cleaner were exonerated, and the driver was illiterate and unaware of the contraband goods loaded by some passengers. They also claimed that the Collector's decision to confiscate the bus despite exonerating the owner was contradictory. The appellants relied on legal precedents to support their arguments.

The Respondent contended that the manager of the firm had knowledge of the contraband goods loaded in the bus and was responsible for their transportation, justifying the confiscation under Section 115(2) of the Act.

The Judge analyzed Section 115(2) of the Customs Act, which states that any conveyance used in smuggling shall be liable to confiscation unless the owner proves lack of knowledge or connivance. The Judge found that both the driver and the manager had full knowledge of the contraband goods being transported and failed to report it to authorities. The manager even concealed the goods in the bus's tool box, justifying the confiscation.

The Judge distinguished the legal precedents cited by the appellants, highlighting that in those cases, the individuals involved had no knowledge of the contraband goods, unlike the present case where both the driver and manager were aware. The Judge also referenced another Tribunal decision emphasizing that no mens rea is required for confiscation under Section 115(2) of the Act.

Conclusively, the Judge upheld the lower authority's decision to confiscate the bus and dismissed the appeal. The redemption fine of Rs. 10,000 was deemed appropriate and not excessive, leading to the rejection of any reduction in the fine.