Transporter penalty fails where sealed consignments were booked "said to contain" and no knowledge of smuggled goods was shown.

Penalty on a transporter was found unsustainable where consignments were booked on a "said to contain" basis and carried in packed condition. The carrier had no obligation or practical opportunity to verify the contents of sealed packages, and no evidence showed knowledge of the alleged smuggled character of the goods. Applying the settled principle that a carrier is not required to inspect package contents or confirm lawful origin in such circumstances, the penalty was set aside.

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Issues: Whether penalty imposed on a transporter was sustainable when the goods were booked on a "said to contain" basis and there was no material to show knowledge of their alleged smuggled character.

Analysis: The condition of pre-deposit was dispensed with and the appeal was heard on merits. The transporter stated that the consignments were received and carried in packed condition on forwarding notes, without any obligation or opportunity to verify the contents. Reliance was placed on the settled principle that a carrier is not required to check the contents of packages or ensure that they are not of smuggled origin. No evidence was found to show the appellant's knowledge of the alleged smuggled nature of the goods.

Conclusion: The penalty was held to be unjustified and was set aside in favour of the appellant.

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