2001 (1) TMI 389 - AT - Customs

Summary

Issues:
1. Whether the truck is liable for confiscation.
2. Whether penalty is imposable on the appellant under the Customs Act.

Analysis:

Issue 1: Liability for Confiscation
The appellant's truck was intercepted with contraband goods loaded, and the driver admitted knowledge of the smuggled nature of the goods. The truck was used as a means of transport in smuggling, making it liable for confiscation under Section 115(2) of the Customs Act. The tribunal upheld the confiscation but reduced the redemption fine to Rs. 75,000, considering it on the higher side.

Issue 2: Imposition of Penalty
The appellant's advocate argued that the driver was instructed to load goods on the return journey to avoid empty runs, denying any involvement in loading smuggled goods. The advocate highlighted the lack of incriminating evidence against the appellant and the driver's initial statement not inculpating the appellant. The tribunal found insufficient evidence linking the appellant to the loading of smuggled goods, extending the benefit of doubt. As a result, the penalty imposed on the appellant under Section 112 of the Customs Act was set aside.

Conclusion
The tribunal ruled in favor of the appellant, partially allowing the appeal by setting aside the penalty and reducing the redemption fine. The decision was based on the lack of conclusive evidence implicating the appellant in the smuggling activity, extending the benefit of doubt due to discrepancies in the driver's statements.