TWO men caught in the act collecting a consignment of thousands of illicitly imported packets of cigarettes narrowly escaped immediate prison sentences.

Raymond Taylor and John Nixon claimed to have been offered £50 to collect the delivery of what they were said to have initially believed was designer clothing.

Durham Crown Court heard that having been observed loading a pallet onto a hired van at a delivery depot, in Houghton-le-Spring, they were arrested by HM Revenue and Customs (HMRC) officers, on June 26 last year.

A search of the van revealed cardboard boxes, concealed under a blanket, containing 797,540 Embassy Regal King Size cigarettes, for the Italian market, but on which no UK duty was paid.

David Lamb, prosecuting, said a further 90,400 non duty-paid cigarettes were recovered from Taylor’s home, in Woodbine Avenue, Horden.

The court was told the total amount of duty evaded amounted to £235,573.

Mr Lamb said the investigation began following the “interception” of a pallet within a consignment marked “clothing”, which was found to contain 200,000 cigarettes, originating from Italy.

Despite initial denials, Taylor, 58, admitted two counts of possessing goods on which duty was not paid,.

Nixon, 56, of West Lane, Middlesbrough, admitted a single count.

The court heard both were approached by a man in a pub with an offer of £50 each to drive to a warehouse to pick up a pallet.

Joe Hedworth, for Taylor, said the former RAF serviceman has, “significant health issues”, partly as a result of two serious road accidents which means he has to use walking sticks for mobility.

David Callan, for Nixon, said he works as a labourer, but is restricted to light duties due to a knee injury.

Judge Simon Hickey said although “somewhat sceptical” about their explanations, he could just avoid jailing them.

Taylor was given a 15-month prison sentence and Nixon 12 months, both suspended for 18 months.

Proceeds of crime confiscation proceedings will now follow at a later date.