2006 (11) TMI 524 - AT - Customs

Summary

Issues:
1. Imposition of penalty and confiscation of currency.
2. Possession of incriminating evidence.
3. Claim of innocence and mitigating circumstances.
4. Consideration of penalty reduction due to advanced age and health condition.

Imposition of penalty and confiscation of currency:
The appeal stemmed from an order imposing a penalty of Rs. 2.4 lakhs and confiscating Indian and Foreign currency amounting to Rs. 47,71,100/-. The appellant, a Chartered Accountant, was intercepted at the airport with the currency in his possession. Various documents and statements linked him to the seized currencies, indicating his involvement in the matter. The Income-tax authorities also found evidence of large financial transactions involving the appellant. Despite claims of innocence and duress, the evidence pointed towards his association with the seized currencies.

Possession of incriminating evidence:
The appellant's defense included arguments about his advanced age, health condition, and lack of specific evidence linking him to the seized baggage. However, the tribunal noted several incriminating pieces of evidence, including the key to the seized bag found in his possession, his admissions to the authorities, and the recovery of documents showing financial transactions matching the seized currency. The tribunal rejected the claim that the key was common and could open any bag, emphasizing the implausibility of such a scenario given the circumstances.

Claim of innocence and mitigating circumstances:
The appellant's representative argued for innocence, highlighting discrepancies in the case and suggesting the involvement of a gang in airport operations. The tribunal, however, found the evidence against the appellant substantial and self-implicatory, leading to the conclusion that he was indeed associated with the seized currencies. The appellant's plea for leniency based on his age, health condition, and past detention under COFEPOSA Act was considered, resulting in a reduction of the penalty imposed.

Consideration of penalty reduction due to advanced age and health condition:
In light of the appellant's critical health condition as a cancer patient and his advanced age, the tribunal decided to reduce the penalty from Rs. 2.4 lakhs to Rs. 1,00,000/- as a form of relief. The tribunal acknowledged the appellant's circumstances but upheld the majority of the impugned order, confirming his association with the seized currencies based on the evidence presented. The appeal was disposed of with the modified penalty amount.