Vehicle confiscation under excise law requires statutory option and finding of owner's knowledge before seizure can stand.

Confiscation of a vehicle under Section 72(2) of the U.P. Excise Act, 1910 could not be sustained without compliance with the proviso requiring the owner to be given the prescribed option to pay fine in lieu of confiscation and a recorded finding that the owner knew or had reason to believe the vehicle would be used for transporting illicit liquor. As neither safeguard was shown on the record, the confiscation orders were quashed. The Court also treated continued seizure as serving no useful purpose where the vehicle could be preserved and produced if needed in the criminal case, and directed release of the vehicle.

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Issues: Whether confiscation of the vehicle under Section 72(2) of the U.P. Excise Act, 1910 was sustainable without giving the owner an option to pay fine in lieu of confiscation and without a finding that the owner knew or had reason to believe that the vehicle would be used for transporting illicit liquor; and whether release of the vehicle was warranted.

Analysis: The confiscation power under Section 72(2) is conditioned by the statutory safeguard in the proviso, which requires that the owner be given the prescribed option and that the authority record satisfaction regarding the owner's knowledge or reason to believe about the vehicle's likely use for transporting illicit material. The record did not show that any such option was given, nor did the authorities record the necessary finding on the owner's knowledge. The Court also treated prolonged seizure of the vehicle as serving no useful purpose when the vehicle could otherwise be preserved and produced if required in the criminal case.

Conclusion: The confiscation orders were unsustainable and were quashed; release of the vehicle was directed in favour of the petitioner.

Final Conclusion: The challenge succeeded, the confiscation was set aside, and the vehicle was ordered to be released subject to production before the criminal court if required.

Ratio Decidendi: Confiscation of a vehicle under Section 72(2) of the U.P. Excise Act, 1910 cannot be sustained unless the statutory option contemplated by the proviso is afforded and the authority records a finding that the owner knew or had reason to believe that the vehicle would be used for transporting illicit liquor.

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