Redemption fine attaches to a smuggling-linked vehicle despite no personal penalty on its owner; driver's penalty remains sustained.

Redemption fine on a conveyance used in attempted smuggling operates in rem and remains sustainable even where its owner incurs no personal penalty. The note states that the truck owner's vehicle remained liable to confiscatory action because of its use in the attempted removal of red sanders, although the redemption fine was reduced in view of the circumstances and the owner's non-involvement in show-cause proceedings. It also states that the truck driver's penalty was sustained because the driver diverted the containers and actively participated in the attempted smuggling; the penalty was considered nominal.

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Issues: (i) Whether the penalty imposed on the truck driver for diversion of containers used in attempted smuggling was liable to be set aside; (ii) Whether redemption fine imposed on the truck owner's vehicle could be sustained despite no personal penalty having been imposed on the owner.

Issue (i): Whether the penalty imposed on the truck driver for diversion of containers used in attempted smuggling was liable to be set aside.

Analysis: The driver had diverted the containers and was actively involved in the attempted removal of red sanders. The penalty imposed was already nominal.

Conclusion: The penalty on the driver was sustained, against the assessee.

Issue (ii): Whether redemption fine imposed on the truck owner's vehicle could be sustained despite no personal penalty having been imposed on the owner.

Analysis: Liability to redemption fine is an action in rem and is distinct from personal penal liability. The absence of penalty upon the owner did not prevent confiscatory action against the vehicle used for attempted smuggling. Considering the circumstances and non-involvement of the owner in the show-cause proceedings, the quantum required reduction.

Conclusion: Redemption fine was sustainable but reduced from Rs. 4 lakh to Rs. 1 lakh, partly in favour of the assessee.

Final Conclusion: The vehicle remained liable to redemption fine independently of the owner's personal culpability, while the driver's penalty remained undisturbed.

Ratio Decidendi: Redemption fine against an offending conveyance is an action in rem and may be imposed notwithstanding the absence of personal penalty upon its owner.

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