Smuggling of gold: owner knowledge required for conveyance confiscation; absence of knowledge led to set aside of confiscation and penalty.

Knowledge of the vehicle owner that the conveyance will carry smuggled gold is a precondition for confiscation; because no evidence proved the appellant knew his car would be used for smuggling, confiscation of the vehicle was held inapplicable and was set aside. Confiscation under the provision targeting conveyances therefore did not apply in this case, and as a direct consequence the penalty for abetment tied to that confiscation could not stand; the penalty imposed on the appellant was also set aside and the appeal allowed.

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Issues: whether the appellant had knowledge that his vehicle would be used for carrying smuggled gold, thereby attracting confiscation under Section 115 of the Customs Act, 1962 and liability to penalty under Section 117 of the Customs Act, 1962.

Analysis: The Tribunal examined the record for evidence that the appellant knew his vehicle would be used to transport smuggled gold. The Tribunal noted that a related appeal by Gourav Jain (Customs Appeal No. 50647 of 2024) was allowed and confiscation and penalty against him were set aside. The Tribunal found no independent or sufficient evidence on record to establish that the appellant had knowledge of the vehicle's use for smuggling. Applying the statutory scheme, confiscation under Section 115(2) requires the conveyance to have been used for removal of prohibited goods and the owner's knowledge is material to imposing confiscation and consequent penalty under Section 117 when liability is predicated on such use.

Conclusion: There is no evidence that the appellant had knowledge that his vehicle would be used for smuggling; accordingly, confiscation under Section 115 does not apply and penalty under Section 117 could not be sustained. The impugned order in so far as it concerns the appellant is set aside and the appeal is allowed in his favour.

Ratio Decidendi: Confiscation of a conveyance under Section 115 and imposition of penalty under Section 117 require proof that the owner had knowledge of the conveyance's use for smuggling; absent such knowledge, confiscation and penalty cannot be sustained.

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