2007 (4) TMI 515 - AT - Customs

Summary

Issues involved:
The issues involved in the judgment are the confiscation of Indian Currency and US $ 4,000, imposition of personal penalty, and the ownership and use of the confiscated currency.

Confiscation of Indian Currency:
The appellants were intercepted at the airport with Indian Currency amounting to Rs. 36 lakhs concealed in chilly powder packets. Statements revealed involvement of a person named Mr. Raja. The currency was found concealed in a meticulous way, indicating mala fide intent. The Tribunal found absolute confiscation justified due to lack of ownership claim by Mr. Raja and the appellants' changing statements.

Confiscation of US $ 4,000:
Regarding the US $ 4,000 recovered from Mrs. Dilshad Salim Mamdani, the Tribunal noted that the amount was below the limit allowed without permission. Confiscation based on lack of arrangements for the currency was deemed unjustifiable. The Tribunal set aside the confiscation of the foreign currency as there was no contravention in respect of the US $ 4,000.

Imposition of Personal Penalty:
The appellants initially admitted receiving monetary consideration for carrying the bags. Despite their intentional violation of the law, the Tribunal considered the penalty of Rs. 3 lakhs each too harsh. The penalty was reduced to Rs. 1 lakh each, considering the amount already deposited by the appellants as per the Tribunal's stay order.

Conclusion:
The Tribunal upheld the absolute confiscation of the Indian Currency due to mala fide intent and lack of ownership claim. The confiscation of the US $ 4,000 was set aside as it was within legal limits. The personal penalty imposed on the appellants was reduced from Rs. 3 lakhs to Rs. 1 lakh each. Both appeals were disposed of accordingly on 11-4-07.