2005 (5) TMI 472

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ring the course of investigation into a case of fraudulant availment of D.E.P.B. benefit on the basis of forged D.E.P.B. Licences and Release Advices, searched the residential premises of Shri Mushtaq Choudhary, Upper Division Clerk working in the Customs House. The search resulted in the recovery of Indian currency Rs. 3.5 lakh and a Mercedes Car No. HR 26 N 4857 from where the Officers recovered certain documents like shipping bills, release advices, etc. Subsequently, the ownership of the car was claimed by Shri Hemen Mafatlal Shah, Appellant No. 2 whom the car was ordered to be released by the ad hoc Additional Session Judge against which the appeal filed by the Customs House was rejected by the High Court of Mumbai. The Additional Comm....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....arned Advocate that car in question is not liable to confiscation under Sections 115(2) and 121 of the Customs Act which reads as under: "Section 115(2) - Any conveyance or animal used as a means of transport in the smuggling of any goods or in the carriage of any smuggled goods shall be liable to confiscation, unless the owner of the conveyance or animal proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance or animal. Section 121 - Confiscation of sale-proceeds of smuggled goods - Where any smuggled goods are sold by a person having knowledge or reason to believe that the goods are smuggled goods, the sale-proceeds thereof shall be liable to ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ue is that the Appellant No. 1 had received money as part of the proceeds of the forged DEPB Licenses and Release Advices and the money so received has been used by him for purchasing the car in question. It is not the case of the Revenue that car was given to the Appellant No. 1 as consideration for sale of the smuggled goods. 6.This Tribunal in the case of Ramchandra v. Collector of Customs, 1992 (60) E.L.T. 277 (T) has held that "Before violation of Section 121 is established the following ingredients must be satisfied : (i)      there must be a sale; (ii)     the sale must be of smuggled goods; (iii)    the sale must be by a person having knowledge or reason to beli....