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Appeal against the confiscation of US $ 6,000 under Customs Act and Foreign Exchange Regulations Act, imposition of penalty, redemption of seized foreign currency, validity of retracted statement, consideration of brother's ownership of the money, applicability of Section 125 of Customs Act, legality of giving option to redeem confiscated currency. Analysis: The appellant appealed against the confiscation of US $ 6,000 under the Customs Act and Foreign Exchange Regulations Act, along with the imposition of a penalty. The appellant was intercepted at the Customs Counter with the undeclared currency, leading to his arrest and subsequent proceedings. The appellant initially claimed ownership of the money but later retracted the statement, attributing the money to his brother working in Jeddah. The authorities upheld the confiscation but reduced the penalty. The appellant sought redemption of the currency, arguing that it belonged to his brother, who had a N.R.I. account and could bring foreign exchange into India legally. The appellant's consultant contended that the confiscated currency should be released on payment of a redemption fine, referencing a previous Tribunal decision allowing redemption in a similar case. The Revenue argued that the currency was a prohibited item under FERA as it was taken out without permission from the Reserve Bank of India, making redemption unjustified. The Revenue relied on legal precedents to support their argument that the currency had become prohibited, thus not warranting redemption under Section 125 of the Customs Act. The Tribunal considered both parties' submissions and observed that the confiscation was solely based on the appellant's initial statement, disregarding the retraction made before the Chief Judicial Magistrate. The Tribunal noted that the appellant produced letters from his brother directing the return of the money left in India. Referring to a previous Tribunal decision, the Tribunal allowed redemption of the US $ 6,000 on payment of a redemption fine of Rs. 1.50 lakh, emphasizing the discretionary power under Section 125 of the Customs Act. The Tribunal confirmed the penalty of Rs. 10,000 imposed on the appellant, partially allowing the appeal. In conclusion, the Tribunal permitted the redemption of the confiscated currency upon payment of the specified fine, considering the circumstances and legal provisions. The judgment highlighted the importance of retracted statements, ownership verification, and the discretionary power of authorities in such cases, ultimately balancing the interests of the appellant and legal requirements.
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