2000 (5) TMI 695 - AT - Customs

Summary

Issues:
1. Confiscation of a truck carrying smuggled goods.
2. Imposition of redemption fine and personal penalties under Customs Act, 1962.
3. Rejection of appellants' defense by the Commissioner.
4. Legal admissibility of evidence and proof of involvement in smuggling.

Analysis:
1. The appellants, joint owners of a truck carrying smuggled goods, faced confiscation and penalties under the Customs Act, 1962. The truck was intercepted with Chinese origin raw silk yarn valued at Rs. 14,40,000. Despite the appellants' claim of innocence and lack of involvement in smuggling, the Commissioner ordered confiscation, redemption fine, and penalties based on the circumstances of the case.

2. The Commissioner rejected the appellants' defense citing failure to appear when summoned and inability to provide the driver's address as reasons for disbelief in their innocence. The Commissioner considered the complaint filed by the driver regarding the theft of the truck as a mere formality to shield the truth, leading to the imposition of fines and penalties.

3. The appellants argued that there was insufficient evidence to prove their involvement in the smuggling operation. They highlighted the theft of the truck, the subsequent misuse by unknown individuals for smuggling, and the absence of incriminating evidence during a search of their premises. The appellants relied on legal precedents where confiscation was overturned due to lack of proof of knowledge or involvement in smuggling.

4. The Tribunal analyzed the evidence and arguments presented by both parties. It noted the appellants' assertion that the truck was stolen before interception, supported by the police complaint filed by the driver. The Tribunal emphasized the lack of verification of the police complaint by the Commissioner and the failure to investigate the driver's whereabouts. It concluded that suspicion and loose circumstances do not constitute legally admissible evidence, ultimately ruling in favor of the appellants by setting aside the confiscation order and penalties due to lack of proof of their involvement in the smuggling operation.