By TIOL News Service

MUMBAI, JAN 24, 2016: THE appellants are engaged in the business of the Transport and Logistics services all over India by hiring trucks of other owners when required for transporting their customers' goods. They had hired one such truck for transportation of goods. On 21.06.2007, at Naubatpur Trade Tax Check Post, the said truck was checked by the Sales Tax Authorities. The truck was loaded with foreign origin gas cylinders [Refrigerant 22, valued at Rs.4,00,000/-] without papers in the garb of machinery and auto parts and, therefore, the Trade Tax Officials seized the goods. The Indian goods loaded in the truck were released by the officers of Trade Tax Department. The alleged contraband goods and the truck was taken by the Customs Officers to Varanasi Customs Office where the witnesses were called, pursuant to which a show cause notice dated 26.12.2007 was issued to the appellants.

The appellants denied any knowledge of the contraband nature of the goods. In adjudication, the Commissioner of Customs imposed a personal penalty of Rs.2,50,000/- on the appellant, who hired the truck and Rs.10,000/- on the driver. The truck was also confiscated and an option was given for release of the same on payment of redemption fine of Rs.1,00,000/-.

As the Tribunal had upheld the order, the appellant is before the High Court and inter alia submits that the Tribunal had decided the appeal in casual manner without considering the submissions made and, therefore, the matter needs to be remanded.

The counsel for the Revenue supported the order.

The High Court held -

++ Fact is not disputed that the seized foreign origin gas cylinders were loaded in the truck hired by the appellants and the appellants as well as the driver of the truck had not been able to identify either consignor or consignee of the seized goods. Therefore, the appellants' involvement in loading foreign origin gas cylinders in the truck in question could not be denied.

++ Section 111 of the Customs Act, 1962 provides that any prohibited goods found concealed in any manner in any conveyance shall be liable to confiscation. Section 112 of the Customs Act, 1962 provides that any persons, who acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, keeping, concealing, selling or purchasing, or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under Section 111 shall be liable to a penalty not exceeding the value of the goods or five thousand rupees, whichever is the greater.

++ In this case, the seized goods was valued worth Rs.4,00,000/-. Therefore, the appellate authority imposed the penalty. The penalty imposed upon the appellants is less than the value of the goods, which has been upheld by the learned Tribunal.

Concluding that the Tribunal had rightly rejected the appellants' appeal, the instant appeals were dismissed.

(See 2016-TIOL-135-HC-ALL-CUS)