2010 (5) TMI 629 - CGOVT - Customs

Revision Application - applicant had intentionally and meticulously concealed the impugned foreign currency by placing the same in different capsules and then swallowing the same into his body It took the Air Intelligence authorities full five days to get the same ejected out of his body. Had there been not a specific information, such detection and seizure could not have been possible. Such cases are nothing but planned crimes of grave category which are handiwork of organized unlawful mafia/gangs. Any subsequent detraction from the legally admissible statement of Section 108 of the Customs Act, 1962 to gain benefit out of those provisions of law which are meant for general public/passengers who occasionally and unintentionally happens to have committed mistakes/some lapses which fall into the category of contravention of certain applicable procedures of law, cannot be accepted for this case herein Held that - Government has not found any merits in applicant s submissions for redemption of impugned absolutely confiscated currency, penalty reduced, Government is of opinion that personal penalty of Rs. 10,00,000/- is too harsh and needs to be reduced, revision Application is disposed off in terms of above.

Summary

Issues: Misdeclaration of foreign currency, Absolute confiscation, Penalty imposition, Claim for redemption, Violation of Customs Act and other regulations

Misdeclaration of foreign currency:
The case involved a situation where the appellant was found carrying a significant amount of foreign currency concealed in capsules inside his body without proper declaration. The appellant initially claimed to be a carrier for a monetary consideration but later sought redemption of the currency, stating it belonged to him. The lower authority decided on absolute confiscation and penalty due to the misdeclaration and concealment of the foreign currency.

Absolute confiscation and Penalty imposition:
The lower authorities decided on absolute confiscation of the foreign currency amounting to Rs. 16,98,716/- and imposed a penalty of Rs. One lakh on the appellant for misdeclaration and concealment of the currency. The Commissioner of Customs (Appeals) upheld this decision, leading the appellant to file a Revision Application before the Central Government under Section 129DD of the Customs Act, 1962.

Claim for redemption:
The appellant requested redemption of the confiscated foreign currency for home consumption on payment of a nominal fine. However, the government found that the option for redemption is not automatic and must be carefully examined by the authorities. In this case, the meticulous concealment and intentional misdeclaration of the currency led the government to reject the appellant's claim for redemption.

Violation of Customs Act and other regulations:
The government found that the appellant's actions violated various provisions of the Customs Act, 1962, including Section 77 for non-declaration of foreign currency, Section 113 for confiscation, and Section 114 for imposing a personal penalty. Additionally, the violation extended to regulations under FEMA, 1999, Foreign Exchange Management Regulations, and Foreign Trade (Development & Regulation) Act, 1992. The government emphasized that such deliberate concealment and misdeclaration constitute planned crimes of a serious nature, not mere lapses or mistakes.

In conclusion, the government disposed of the Revision Application by modifying the personal penalty imposed on the appellant from Rs. 10,00,000/- to Rs. 5,00,000/-. The absolute confiscation of the foreign currency was upheld, and the claim for redemption was rejected based on the deliberate and organized nature of the appellant's actions. The judgment highlighted the severity of such offenses and the importance of upholding customs regulations to prevent illicit activities related to currency smuggling.