2003 (11) TMI 435 - AT - Customs

Summary

Issues: Imposition of penalty under Section 112(b) of the Customs Act, 1962 and confiscation of the Jeep Taxi under Section 115(2) of the Customs Act, 1962.

In this case, the appellant was penalized Rs. 50,000 under Section 112(b) of the Customs Act, 1962, and his Jeep Taxi was confiscated under Section 115(2) of the same Act. The liabilities arose when the Deesa Rural Police intercepted five persons traveling in the Taxi and found foreign marked gold in their luggage. The Customs Department seized the gold believing it to be smuggled. The appellant, who was the owner and driver of the Taxi, admitted to agreeing to transport the passengers. The Commissioner found the gold liable for confiscation and the Taxi used for carrying the smuggled gold, imposing a penalty on the appellant. However, it was observed that there was no evidence of the appellant having prior knowledge of the gold in the passengers' luggage or any special consideration for transporting them.

Upon review, it was concluded that since there was no proof or even suspicion of the appellant's pre-concert or knowledge about the gold, the confiscation of the vehicle under Section 115(2) was unwarranted and set aside. Similarly, as there was no evidence of the appellant's consent to transport the alleged smuggled gold, the penalty under Section 112(b) was also set aside. Consequently, the order imposing the penalty and confiscating the Taxi was overturned, and the appeal was allowed with consequential relief.