2004 (7) TMI 581 - AT - Customs

Summary

Issues:
1. Confiscation of foreign currencies and travellers cheques under Customs Act and FERA.
2. Imposition of penalty on the appellant under Customs Act.

Confiscation of Foreign Currencies and Travellers Cheques:
The appellant filed an appeal against the Commissioner's order that absolutely confiscated assorted foreign currencies and travellers cheques worth Rs. 2,73,42,420 under Section 113(d)(e) and (h) of the Customs Act, 1962 read with Section 67 of FERA, 1973. The case originated when security officials discovered six brown paper packets containing the currencies and cheques among live crabs intended for export. Despite the absence of the appellant during proceedings, the Tribunal proceeded to decide the case on its merits. The Tribunal upheld the Commissioner's decision, emphasizing the appellant's involvement in abetting the smuggling attempt. It was noted that the appellant, not an authorized Customs House Agent (CHA), had facilitated the customs transactions, leading to the confiscation. The Tribunal found the penalty of Rs. 25,000 imposed by the Commissioner reasonable, given the appellant's active role in the offense.

Imposition of Penalty:
The Tribunal, after examining the records and submissions, affirmed the Commissioner's decision to impose a penalty of Rs. 25,000 on the appellant. The Commissioner had considered the appellant's admission of guilt and request for leniency but emphasized the seriousness of the offense involving foreign currencies and travellers cheques valued at over Rs. 2.73 crores. Despite the appellant's unauthorized handling of customs matters and lack of proper authorization as a CHA, he was found culpable for aiding the smuggling attempt. The Tribunal concurred with the Commissioner's findings that the charges against the appellant were proven, leading to the confiscation and penalty under relevant sections of the Customs Act. Consequently, the Tribunal rejected the appellant's appeal, upholding the penalty of Rs. 25,000 imposed by the Commissioner.

This comprehensive analysis outlines the issues of confiscation of foreign currencies and travellers cheques under the Customs Act and FERA, as well as the imposition of a penalty on the appellant. The judgment highlights the appellant's involvement in abetting the smuggling attempt, his unauthorized handling of customs transactions, and the reasonableness of the penalty imposed by the Commissioner, ultimately leading to the dismissal of the appellant's appeal.