A BUSINESSMAN found guilty of taking part in a major cigarette smuggling plot, yesterday failed to clear his name.

When the judge jailed Paul Michael Kelly for three-and-a-half years after the Nottingham Crown Court trial last October, he was granted bail pending the appeal in London's Criminal Appeal Court.

But yesterday's dismissal of his challenge by Lord Justice Auld, sitting with Mr Justice David Clarke and Mr Justice Christopher Clarke, means Kelly must now start his jail term.

Kelly, 45, whose address was given as Salvin Arms public house, Spennymoor, County Durham, was found guilty of conspiracy to cheat the public revenue by importing a consignment of cigarettes from Italy, pretending it was a consignment of clothing.

The cigarettes, worth £123,600 would have attracted duty of about £680,000.

Kelly's QC, Timothy Roberts, said the jury's verdict was inconsistent with its acquittal of a co-accused, who had an identical defence.

Lord Justice Auld said the prosecution contended Kelly was the leader and the co-accused presented himself as vulnerable.

He also referred to the "dramatic differences" in their reactions to being arrested. Kelly had smashed his mobile phone - a possible piece of evidence - and tried to escape.

Referring to the trial judge's certification, he said the Appeal Court was not bound by the view he took and the three judges disagreed with him.