2001 (5) TMI 306 - AT - Customs

Summary

Issues involved:
1. Confiscation of silk yarn and truck.
2. Appeal against the order of confiscation of the truck and personal penalty imposed.
3. Imposition of personal penalty under Section 112(b) of the Customs Act, 1962.
4. Confiscation of the truck under Section 115(2) of the Customs Act, 1962.

Analysis:
1. The appellants were the owners of a truck where silk yarn of foreign origin was recovered. The Commissioner of Customs confiscated both the silk yarn and the truck. An appeal was filed against this order claiming the truck. Subsequently, another order was passed allowing redemption of the truck on payment of a fine and imposing a penalty. An appeal was filed against this order as well.

2. The first appeal became infructuous as the second appeal was against the confiscation of the truck and the personal penalty imposed. The first appeal was dismissed.

3. The appellant contended that they had no knowledge of the transportation of foreign goods by their driver and argued that there was no evidence linking them to the smuggled goods. The personal penalty imposed under Section 112(b) of the Customs Act was set aside due to lack of evidence connecting the appellant with the smuggled goods.

4. Regarding the confiscation of the truck, Section 115(2) of the Customs Act states that any conveyance used in smuggling goods shall be liable to confiscation unless the owner proves it was used without their knowledge. The appellant failed to produce the driver despite an undertaking to do so. As the goods were recovered from the truck and the appellant couldn't prove lack of knowledge or connivance, the confiscation of the truck was upheld. However, the redemption fine was reduced considering the circumstances of the case. The appeal was disposed of accordingly.