2010 (10) TMI 1146 - AT - Customs

Summary

Issues involved: Attempted smuggling of foreign currencies, absolute confiscation, penalty imposition.

Attempted Smuggling of Foreign Currencies:
On 02.08.03, DRI officers intercepted the appellant at the Aerobridge of the International airport, Chennai, bound for Singapore. While nothing was found in his hand baggage, US$ 1,92,150 and 97 Singapore dollars were seized from his checked-in baggage. Initially, the appellant admitted to carrying the foreign currency to smuggle out of India, later retracting the statement. Subsequent follow-up led to the recovery of additional foreign currencies from the flush tank of the toilet in his hotel room. The appellant confessed to keeping the foreign currencies in the flush tank. A Show Cause Notice dated 22.11.03 was issued, resulting in absolute confiscation of the foreign currencies and a penalty of Rs. 10 lakhs imposed by the Commissioner.

Absolute Confiscation and Penalty Imposition:
After hearing both sides, it was established that the appellant indeed attempted to smuggle the foreign currencies out of India, as admitted by him. The foreign currencies seized from both his baggage and the hotel room belonged to him and were intended for smuggling. Consequently, the Appellate Tribunal upheld the absolute confiscation and deemed the penal action against the appellant as sustainable. However, considering the overall facts and circumstances, the penalty imposed was reduced to Rs. Five lakhs. The appeal was partly allowed on these terms.