1990 (9) TMI 192 - AT - Customs

Summary

Issues:
1. Imposition of penalty under Section 112 of the Customs Act, 1962 on the appellant.
2. Whether the absolute confiscation of the truck in question is in accordance with the law.

Imposition of Penalty under Section 112:
The appellant appealed against an order imposing a penalty and confiscating a truck under the Customs Act. The appellant was found guilty based on confessional statements of the driver and helper of the truck, implicating him in smuggling activities. The appellant contended that these statements were insufficient to hold him guilty. The Tribunal agreed, stating that mere confessions of co-accused are not enough to establish liability. They cited a case where additional evidence corroborated the confession, which was not present in this case. Consequently, the penalty imposed under Section 112 of the Customs Act was deemed unjustifiable.

Confiscation of the Truck:
Regarding the confiscation of the truck under Section 115(2) of the Customs Act, the Tribunal noted that the vehicle was used to transport smuggled goods. The driver, who was in charge of the vehicle, admitted knowledge of the contraband. While the law allows for confiscation, absolute confiscation was deemed excessive. The law provides for an option for the owner to pay a fine in lieu of confiscation, not exceeding the market price of the goods. In this case, the appellant should have been given the opportunity to redeem the vehicle by paying a redemption fine. The Tribunal set the redemption fine at Rs. 50,000, allowing the appellant to redeem the vehicle within three months. Consequently, the order of absolute confiscation was set aside, and the appellant was granted the option to redeem the vehicle by paying the specified fine.

Conclusion:
The Tribunal partially allowed the appeal by setting aside the penalty imposed under Section 112 of the Customs Act and the absolute confiscation of the truck. The appellant was given the opportunity to redeem the vehicle by paying a redemption fine of Rs. 50,000 within a specified period.