M/S. INDIA STEAMSHIP COMPANY LTD. vs UNION OF INDIA & ANR.

The Supreme Court interpreted clause (e) of sub-section (1) of Section 115 of the Customs Act, 1962, which allows for the confiscation of conveyances carrying imported goods found with a substantial portion missing unless the master can account for the loss. The Court held that the appellant-company failed to provide a satisfactory explanation for the shortage of 45,000 cigarettes found missing from the vessel, leading to the conclusion that the goods were likely removed clandestinely. Consequently, the Court upheld the confiscation of the vessel under the Customs Act.