Taimin Tobacco Sdn Bhd and director Tan Chor Meng were also freed from a charge of failing to pay RM1.8 million in duties levied on the goods.

Judge Noor Aini Yusof said the prosecution had failed to prove all the ingredients of the charges to establish a prima facie case against the accused.

“There were loopholes in the cases, and two witnesses were unclear in their testimonies when cross-examined,” she said.

Aini said prosecutors had also failed to call key witnesses, resulting in the court drawing adverse inferences against the prosecution.

Taimin Tobacco and Tan were charged under Section 135(1)(a) of the Customs Act 1967, and would have been liable to a penalty of between RM18 million and RM36 million or up to five years’ jail, or both, if convicted.

They were also charged under Section 78 of the same Act with failing to declare the cigarette and would have been liable to a minimum fine of RM50,000 or up to five years’ jail, or both, if convicted.

The prosecution had sought to establish that the offences were committed at the North Butterworth Container Terminal at 10.30am on Feb 23, 2021.

The accused’s defence was that the goods were still in transit at the time.

Lawyers Muniandy Vestanathan, Gowri Subbaiyah and Ashok Athimulan represented the company and Tan, while Megat Abdul Latif Megat Azlan from the customs department prosecuted.