Customs confiscation overrides criminal-court property release powers, while corroborated customs statements can establish knowing transport of confiscable goods.
Customs confiscation and vesting in the Central Government override the general criminal-court power to dispose of property under the Code of Criminal Procedure. Once a seized vehicle has been confiscated under the Customs Act, a Magistrate cannot order its release under Section 452, and the confiscation remains operative. Knowingly transporting silver liable to confiscation may attract liability under the Customs Act where voluntary customs-enquiry statements, corroborative evidence, seizure records and surrounding conduct establish conscious involvement. The statutory presumption of culpable mental state may apply, while an unsupported delayed explanation about the nature of the goods may be rejected.
Issues: (i) Whether the Magistrate could order release of the seized jeep under Section 452 of the Code of Criminal Procedure despite confiscation under the Customs Act; (ii) Whether accused 3, 6 and 7 were proved to have knowingly transported silver liable to confiscation so as to attract Section 135 of the Customs Act.
Issue (i): Whether the Magistrate could order release of the seized jeep under Section 452 of the Code of Criminal Procedure despite confiscation under the Customs Act;
Analysis: The jeep had already been confiscated by the customs authorities and, by virtue of confiscation, vested in the Central Government. No claim for possession was shown to have been made before the Magistrate. Section 452 of the Code is a general provision for disposal of property at the end of trial, whereas confiscation and disposal under the special customs statute operate in their own field. A special statutory scheme prevails over the general provision and the Magistrate could not ignore the confiscation order and direct release of the vehicle.
Conclusion: The order releasing the jeep was illegal and was set aside. The confiscation order remained unaffected.
Issue (ii): Whether accused 3, 6 and 7 were proved to have knowingly transported silver liable to confiscation so as to attract Section 135 of the Customs Act;
Analysis: The evidence showed that accused 3, 6 and 7 formed the crew of the boat carrying 86 silver ingots intended for illicit export, and their conduct during interception supported conscious participation. Their statements under Section 108 of the Customs Act were relied upon along with corroborative testimony and the seizure mahazar. The statutory presumption as to culpable mental state under Section 138A also operated against them, and their belated explanation that they believed the goods to be lead was rejected. The material established knowledge that the goods were liable to confiscation under Section 111 and that they were concerned in carrying them for export.
Conclusion: The acquittal of accused 3, 6 and 7 was set aside and they were convicted under Section 135 of the Customs Act.
Final Conclusion: The appeal succeeded in part, resulting in reversal of the acquittal of accused 3, 6 and 7 and in setting aside the Magistrate's order releasing the jeep, while leaving the customs confiscation intact.
Ratio Decidendi: Where a special statute provides for confiscation and vesting of seized property in the State, the criminal court cannot invoke the general power of disposal under the Code to order release of that property; and voluntary statements under customs enquiry, supported by surrounding circumstances and the statutory presumption of culpable mental state, can sustain conviction for knowingly dealing with smuggled goods.