2008 (12) TMI 499 - AT - Customs

Summary

Issues:
- Confiscation of seized currency
- Application of Sections 121 and 125 of the Customs Act, 1962
- Failure of respondent to appear for hearing

Confiscation of Seized Currency:
The appeal before the Appellate Tribunal CESTAT, Mumbai was centered on the redemption of seized currency amounting to Rs. 1,00,000. The Revenue contended that since the currency was identified as the sale proceeds of smuggled diamonds, it should have been confiscated under Section 121 of the Customs Act, 1962, instead of being allowed redemption under Section 125.

Application of Sections 121 and 125 of the Customs Act, 1962:
The Commissioner of Customs had determined that the seized Rs. 1,00,000 was indeed the sale proceeds of smuggled diamonds, justifying its confiscation under Section 121. Section 121 specifically deals with the confiscation of sale proceeds of smuggled goods when sold by an individual with knowledge of their illicit origin. In this case, the Commissioner's findings aligned with the provisions of Section 121, indicating that the currency should have been confiscated rather than redeemed.

Failure of Respondent to Appear for Hearing:
Throughout the legal proceedings, the respondent failed to appear for multiple scheduled hearings despite ample opportunities and notices being issued. The Tribunal noted the repeated absence of the respondent and the efforts made to notify them, ultimately leading to the case being taken up for disposal on its merits due to the respondent's persistent non-appearance.

In conclusion, the Appellate Tribunal CESTAT, Mumbai allowed the appeal filed by the Revenue, ordering the absolute confiscation of the seized currency of Rs. 1,00,000, emphasizing the application of Sections 121 and 125 of the Customs Act, 1962 in determining the fate of the currency identified as the sale proceeds of smuggled diamonds.