2010 (12) TMI 1023 - CGOVT - Customs

Revision Application - seizure of foreign currency - applicant deposited the personal penalty and requested to release the foreign currency after deducting the redemption fine - release of foreign currency was denied treating the application as time barred - Applicant has argued that AC/Dy. Commissioner of Customs (Refunds), C.S.I. Airport, Mumbai in his order-in-original No. DC/Ref/62/R/2010, dated 28-10-2010 has allowed refund after adjusting redemption fine amount. In the instant case also, he should have adjusted the redemption fine amount by deducting the same from the amount to be refunded - Held that - Government observes that since there is no time limit specified by Commissioner of Customs in his order-in-original for redemption of currency, the said option is still exercisable. The impugned orders are set aside and Assistant Commissioner (Refund) is directed to allow release of equivalent amount of foreign currency in Indian rupees after adjusting the amount of redemption fine from said refundable amount, revision application is disposed off

Issues:
1. Refund application time-barred - rejection by adjudicating authority.
2. Disentitlement to claim currency due to failure to exercise redemption fine option.
3. Appeal rejection by Commissioner of Customs (Appeals).
4. Revision application grounds before Central Government.

Issue 1: Refund Application Time-Barred - Rejection by Adjudicating Authority:
The case involved the seizure of foreign currency from the applicant by customs officials. The adjudicating authority ordered confiscation of the currency but allowed redemption on payment of a fine. The applicant filed a refund application after paying the penalty, but it was rejected as time-barred by the adjudicating authority. The rejection was based on the application being filed after six months from the original order and the absence of the original copy of the order-in-original. The applicant argued for a refund after adjusting the redemption fine, emphasizing the lack of a specified time limit for redemption in the original order. The Central Government set aside the rejection, directing the release of the refundable amount after deducting the redemption fine.

Issue 2: Disentitlement to Claim Currency Due to Failure to Exercise Redemption Fine Option:
The Commissioner of Customs (Appeals) rejected the applicant's appeal, stating that by not exercising the option to pay the redemption fine, the applicant forfeited any claim to the confiscated currency. The Commissioner held that the confiscation became absolute property of the Central Government due to the applicant's failure to avail of the redemption option. The Central Government affirmed the decision, emphasizing that the final decision regarding the confiscated currency lies with the Central Government.

Issue 3: Appeal Rejection by Commissioner of Customs (Appeals):
The applicant's appeal before the Commissioner of Customs (Appeals) was rejected on the grounds of not utilizing the redemption fine option provided by the adjudicating authority. The rejection was based on the belief that the applicant lost the right to claim the currency by not following the prescribed procedure. The Commissioner upheld the confiscation as absolute property of the Central Government due to the applicant's inaction.

Issue 4: Revision Application Grounds Before Central Government:
The applicant filed a revision application before the Central Government, challenging the rejection of the refund application and the appeal decisions. The grounds included the absence of a specified time limit for redemption in the original order, the unjust rejection based on the refund application being beyond six months, and the request for adjusting the redemption fine before refunding the balance amount. The Central Government, after reviewing the case records and relevant provisions, directed the release of the refundable amount after deducting the redemption fine, overturning the previous decisions.

In conclusion, the Central Government's judgment addressed the issues of time-barred refund applications, disentitlement due to failure to exercise redemption fine options, appeal rejections, and revision application grounds, ultimately directing the release of the refundable amount after adjusting the redemption fine.

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