Confiscation of conveyance used for smuggling upheld after statutory amendment, while redemption fine was reduced for excessiveness.

Confiscation of a truck used to carry smuggled goods was sustained under Section 115(2) of the Customs Act, 1962 because the earlier requirement that precautions be prescribed by rule had been deleted by Section 79 of the Finance Act, 1988. Since the seizure occurred after that amendment, the objection based on the former rule-making condition failed. The redemption fine was nevertheless considered excessive on the facts and was reduced to align with the circumstances of the case.

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Issues: (i) Whether confiscation of the truck used for carriage of smuggled goods was sustainable under Section 115(2) of the Customs Act, 1962 after the deletion of the rule-making requirement by Section 79 of the Finance Act, 1988; (ii) whether the redemption fine in lieu of confiscation required reduction.

Issue (i): Whether confiscation of the truck used for carriage of smuggled goods was sustainable under Section 115(2) of the Customs Act, 1962 after the deletion of the rule-making requirement by Section 79 of the Finance Act, 1988.

Analysis: The confiscation was upheld as legally in order under Section 115(2) of the Customs Act, 1962. The reliance placed on the earlier view requiring rules for precautions to be prescribed was held inapplicable because the relevant stipulation had already been deleted by Section 79 of the Finance Act, 1988. As the seizure occurred after that amendment, the challenge to confiscation failed.

Conclusion: The confiscation of the truck was valid and was sustained.

Issue (ii): Whether the redemption fine in lieu of confiscation required reduction.

Analysis: Although confiscation was maintained, the circumstances of the case were taken into account for fixing the redemption fine. The fine originally imposed was considered excessive for the facts and was reduced to meet the ends of justice.

Conclusion: The redemption fine was reduced to Rs. 50,000/-.

Final Conclusion: The confiscation stood affirmed, but the amount payable for redemption was moderated, resulting in partial relief to the appellant.

Ratio Decidendi: After deletion of the rule-making requirement by statutory amendment, confiscation of a conveyance used for smuggling can be sustained under Section 115(2) of the Customs Act, 1962 without reliance on the earlier requirement of prescribed precautions.

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