Customs confiscation requires a substantial portion of imported cargo, assessed by quantity and value, not just one missing consignment.

Section 115(1)(e) of the Customs Act, 1962 was construed to apply only where the missing imported goods form the whole or a substantial portion of the cargo on board, assessed by both quantity and value. The provision was read in light of its anti-evasion purpose, but the serious consequence of vessel confiscation required a restrained application. A substantial shortage in one consignment did not automatically justify confiscation if that consignment was only an insignificant part of the total imported goods. On the stated facts, the missing cigarettes were not a substantial portion of the imported cargo, so confiscation of the vessel was not sustainable.

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Issues: Whether, for confiscation of a conveyance under Section 115(1)(e) of the Customs Act, 1962, the expression "whole or substantial portion of such goods" refers to the whole or substantial portion of all imported goods on board, and whether the missing cigarettes in the present case satisfied that requirement.

Analysis: The provision was construed in the context of its purpose of preventing evasion of customs duty, while also recognising that confiscation of a vessel is a serious consequence. The expression "such goods" was held to mean the imported goods carried in the vessel, but the assessment of whether the missing goods constitute a "substantial portion" must be made with reference to both quantity and value. On that approach, a substantial part of one consignment does not automatically attract confiscation if that consignment is only an insignificant part of the total imported cargo. On the facts, the missing 45,000 cigarettes were not a substantial portion of the goods imported in the vessel either in quantity or in value.

Conclusion: Section 115(1)(e) was not attracted, and the confiscation of the vessel could not be sustained.

Final Conclusion: The appellant succeeded, the confiscation order was set aside, and the judgment of the learned Single Judge was restored.

Ratio Decidendi: For confiscation under Section 115(1)(e) of the Customs Act, 1962, "substantial portion" is to be judged with reference to the imported goods as a whole on the basis of quantity and value, and confiscation is not justified where the missing goods are only an insignificant part of the total cargo.

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