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of <h1>Customs penalties overturned due to lack of evidence connecting appellants to contraband</h1> The Tribunal set aside the penalties imposed on the appellants under Section 112 of the Customs Act and the confiscation of particle boards used for ... Confiscation of goods and conveyance Issues:1. Confiscation of contraband goods and particle boards.2. Imposition of penalty under Section 112 of the Customs Act.3. Connection of the appellants with the contraband.4. Confiscation of the particle boards for concealment.Confiscation of Contraband Goods and Particle Boards:The case involved the confiscation of contraband goods and particle boards concealed within a truck. The Commissioner had confiscated the contraband and permitted the redemption of the particle boards under Section 119 of the Customs Act. The appellants were issued a penalty of Rs. 2.5 lakhs. The Tribunal analyzed the evidence and found that the appellants were not connected to the contraband. The Tribunal emphasized that the Commissioner's order lacked discussion on the evidence and was based on no substantial proof. It was concluded that there was no justification for imposing a penalty under Section 112 and set aside the order of imposing a fine on the particle boards used for concealment.Imposition of Penalty under Section 112:The appellants contested the imposition of a penalty under Section 112 of the Customs Act. The Tribunal noted that the Commissioner's order did not establish a link between the appellants and the contraband. It was highlighted that changing the driver of a truck, especially when the truck did not belong to the consignor or the broker, could not be used as circumstantial evidence to implicate the appellants. The Tribunal ruled that the penalty imposed on the appellants was unjustified as there was no concrete evidence connecting them to the contraband.Connection of the Appellants with the Contraband:The appellants argued that they had no involvement with the contraband found in the truck. The Tribunal observed that none of the recorded statements in the show cause notice linked the appellants to the contraband. It was emphasized that the mere act of directing a broker to engage a truck for transporting legitimate goods did not make the appellants responsible for any subsequent illegal loading of contraband. The Tribunal concluded that the evidence presented did not establish any connection between the appellants and the contraband.Confiscation of the Particle Boards for Concealment:Regarding the confiscation of the particle boards used for concealing the contraband, the Tribunal referred to previous judgments and held that there was no cause for confiscation when the nexus between the owner of the contraband and the owners of the goods used for concealment was not established. Relying on established case law, the Tribunal set aside the order of imposing a fine on the particle boards. The appeal was allowed, and the lower order was set aside, providing appropriate relief as warranted.In conclusion, the Tribunal found that the appellants were not connected to the contraband and that the penalties imposed were unjustified. The order of penalty under Section 112 and the confiscation of the particle boards for concealment were set aside based on the lack of evidence linking the appellants to the illegal activities.
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