2005 (3) TMI 605 - AT - Customs

Summary

Issues: Imposition of penalty under Section 112 of Customs Act for possession of counterfeit currency notes.

Analysis:
1. Imposition of Penalty: The appellant filed an appeal against the penalty imposed under Section 112 of the Customs Act for possession of counterfeit currency notes. The currency notes of Rs. 500 denomination were found on the appellants during a search, which were later confirmed to be counterfeit. The appellant contended that no statement was made by them and that they had not smuggled the currency notes from Nepal, arguing that possession of fake currency notes is not an offense under the Customs Act.

2. Supply of Statements: The appellant claimed that they were not provided with a copy of the statements made by them. However, it was found that all statements were indeed supplied along with the show cause notice, and the appellant did not request these statements before the adjudicating authority. The Session Judge's bail order also relied on these statements, indicating that the appellants were aware of the nature of the currency notes they possessed and that they had purchased them knowingly.

3. Adjudication and Decision: The Tribunal noted that the appellants were dealing in smuggled counterfeit Indian currency, causing harm to the Indian economy and the state's security. Considering these factors, the Tribunal found no merit in the appellant's contention regarding the non-supply of statements. The impugned order imposing penalties was upheld, and the appeals were dismissed on 16-3-2005.