2015 (3) TMI 1072 - AT - Customs

Imposition of penalty - Seizure of fake Indian currency - Held that - Court clearly show that the appellant has been found to have no knowledge of the fact that the carton contained fake currency and he had not at all involved himself in transportation of fake currency knowing that he was doing so. Under the circumstance, in view of the clear finding, the penalty imposed on the appellant cannot be sustained - Decided in favour of assessee.

Summary

Issues:
1. Seizure of fake Indian currency notes worth Rs. 14.99 lakhs from individuals traveling in a car.
2. Imposition of penalty on the appellant for involvement in the transportation of fake currency.
3. Appeal filed seeking stay during the pendency of appeal.
4. Acquittal of the appellant by the Additional Chief Judicial Magistrate Court.
5. Analysis of the appellant's knowledge and involvement in the transportation of fake currency.
6. Decision on the penalty imposed on the appellant.

Issue 1: The Directorate of Revenue Intelligence (DRI) seized fake Indian currency notes worth Rs. 14.99 lakhs from individuals traveling in a car near a bank. The currency was concealed in tin containers in a cardboard carton. The individuals claimed they were directed by someone to transport the carton.

Issue 2: Proceedings were initiated against five individuals, including the appellant, resulting in a penalty of Rs. 2 lakhs being imposed. The appellant challenged the penalty, claiming he had no knowledge of the fake currency in the carton and was merely assisting a friend by driving the car.

Issue 3: The appellant filed an appeal seeking a stay during the appeal process. The tribunal waived the requirement of a pre-deposit and proceeded to hear the appeal for final decision.

Issue 4: The appellant was acquitted by the Additional Chief Judicial Magistrate Court, which found that he had no mens rea and was unaware of the fake currency in the carton. The court observed that there was no evidence implicating the appellant in the smuggling of counterfeit currencies.

Issue 5: The tribunal analyzed the evidence and observations made by the court, concluding that the appellant had no knowledge of the fake currency and was not knowingly involved in its transportation. The court found that the penalty imposed on the appellant could not be sustained based on the clear finding of lack of involvement.

Issue 6: Considering the appellant's lack of knowledge and involvement in the transportation of fake currency, the tribunal allowed the appeal, overturning the penalty imposed on the appellant. The court's decision was based on the appellant's acquittal and the lack of evidence proving his active participation in the smuggling of counterfeit currencies.