2008 (12) TMI 458 - AT - Customs

Summary

Issues involved: Confiscation of travellers cheques under Section 113(d) of the Customs Act, 1962 and imposition of penalties under Section 114.

Summary:

Confiscation of travellers cheques:
The case involved full-fledged money changers (FFMCs) whose Manager and Assistant were involved in issuing travellers cheques against forged passport signatures. Travellers cheques and foreign currencies were seized from a passenger, leading to a show-cause notice proposing confiscation and penalties. The Commissioner of Customs ordered absolute confiscation of the seized items and imposed penalties on the appellants except the present appellants.

Decision on confiscation:
The Appellate Tribunal found the travellers cheques to be offending goods and thus liable to confiscation. However, noting that the appellants had not received any payment for the cheques, the Tribunal extended the option of redemption of the cheques on payment of a fine of Rs. 2,60,000. This decision was based on precedents such as Halithu Ibrahim v. CC (Airport), Chennai, Savier Poonolly v. CC, Chennai, and Krishnakumari v. CC Chennai.

Conclusion:
The appeal was partly allowed, granting the appellants the option to redeem the confiscated travellers cheques upon payment of the specified fine. The operative part of the order was pronounced in open court on 12-12-2008.