Penalty for carriage of smuggled goods fails absent evidence linking transporter to loading or transport.

Penalty on the transporter for alleged carriage of smuggled goods was unsustainable because the record contained no independent evidence linking it to loading or transportation of the contraband. The penalty order gave no reasoned discussion of the transporter's liability and relied only on a bare rejection of its denial. On the facts, the transporter had merely arranged the truck, which was insufficient to establish participation in the alleged illegal act. The penalty was therefore set aside.

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Issues: Whether penalty imposed on the transporter for alleged involvement in carriage of smuggled goods was sustainable in the absence of evidence connecting it with loading or transportation of the contraband.

Analysis: The order imposing penalty did not contain any discussion of the transporter's liability and rested only on a bare rejection of its denial. The record did not disclose any independent evidence showing that the transporter was connected with the loading of the goods or with the transportation of the contraband found in the truck. On the facts, the transporter had only arranged the truck, and the material on record did not establish participation in the alleged illegal act.

Conclusion: The penalty was not sustainable and was set aside in favour of the assessee.

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