1997 (9) TMI 283 - AT - Customs

Summary

Issues:
1. Confiscation of contraband goods and truck under Customs Act, 1962.
2. Imposition of personal penalty on the owner of the truck.
3. Consideration of evidence regarding the owner's knowledge of the truck's use for smuggling.

Analysis:

1. The judgment revolves around the confiscation of contraband goods and the truck under the Customs Act, 1962. The appellant, as the owner of the truck, was found in possession of contraband goods like VCRs, VCR cassettes, and wristwatches valued at Rs. 47,41,197. The truck was intercepted after being chased, and the driver revealed that he was transporting smuggled goods for another individual. The Commissioner of Customs ordered absolute confiscation of the goods under Section 111(d) and the truck under Section 115(2) of the Customs Act. Additionally, a personal penalty of Rs. 25,000 was imposed on the appellant.

2. The appellant's counsel argued that the owner had no knowledge of the truck being used for smuggling activities, emphasizing the statement of the truck's cleaner to support this claim. The counsel contended that the driver was solely responsible for using the truck for smuggling, and therefore, absolute confiscation of the truck without the option of redemption was unjust. The counsel requested the release of the truck on payment of a fine and urged for a reduction in the imposed penalty.

3. Upon careful consideration, the Tribunal found that the driver, as the person in charge of the truck, was aware of the presence of contraband goods and attempted to evade Customs officers, indicating his complicity. The appellant's statement acknowledging the transaction with the individual involved in smuggling was deemed credible despite a subsequent retraction. The Tribunal noted that the belated retraction was viewed as an afterthought and upheld the confiscation of the truck and the penalty on the appellant. However, considering the circumstances and the extended impoundment period of the truck, the Tribunal modified the order. The appellant was granted the option to redeem the truck by paying a fine of Rs. 50,000 in place of confiscation, and the penalty was reduced to Rs. 12,000.

In conclusion, the appeal was disposed of with the modified order allowing the appellant to redeem the truck on payment of the specified fine and reducing the penalty amount accordingly.