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Issues: Confiscation of buses carrying smuggled goods; Liability of owners and drivers; Redemption of buses on payment of fine; Amount of fine for redemption.
In this case, the appellants, who are the owners of two buses, had their buses used to transport smuggled goods worth Rs. 15 lakhs each from Nepal to India. The goods were loaded by the tour organizer, Salim Chhipa, despite protests from passengers. The buses were provisionally released on a personal bond and cash security of Rs. 75,000 each. The impugned order confiscated the buses without offering the owners an option to redeem them by paying a fine. The appellants contended that they had no knowledge of the smuggled goods being carried and that Salim Chhipa was solely responsible. They requested the buses to be released on payment of a nominal fine due to being public carriers. The learned JDR argued that the buses were liable for confiscation under Section 115(1) of the Customs Act as Salim Chhipa controlled the drivers and conductors, making the buses instrumental in carrying the smuggled goods. The Tribunal acknowledged the liability of the buses for confiscation but deemed the confiscation without the option of redemption illegal. The owners were granted the opportunity to redeem the buses by paying a fine, considering their lack of involvement or knowledge in the smuggling operation. The Tribunal decided that a fine of Rs. 30,000 each should be paid for the redemption of the buses, modifying the impugned order accordingly. As the appellants had already deposited Rs. 75,000 each for the provisional release of the buses, the Tribunal ordered the refund of the balance amount of security after deducting the fine imposed for redemption. The judgment highlighted the importance of providing an option for redemption of confiscated property and considered the circumstances of the case in determining the appropriate amount of fine for redemption, taking into account the lack of involvement of the owners and drivers in the smuggling activities.
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