2009 (12) TMI 654 - CGOVT - Customs

Revision Application - Air passenger failed to declare Indian currency that he was carrying while going abroad, currency was absolutely confiscated - applicant has filed revision application before the Revisionary Authority mainly on the grounds that Lower authority ought to have appreciated that the violation was of regulation and rules framed thereunder and absolute confiscation was harsh and excessive - Held that - Govt. feels that absolute confiscation is very harsh and an option for redemption can be given under Section 125 of the Customs Act, 1962. Accordingly, the confiscated Indian currency equivalent to Indian Rs. 46,500/- is allowed to be redeemed on payment of Redemption Fine of Rs. 15,000/- (Rupees Fifteen Thousand Only ) in lieu of confiscation, under Section 125 of the Customs Act, 1962, personal penalty imposed by the lower authority appears reasonable and there is no ground to reduce, revision application succeeds

Summary

Issues:
1. Absolute confiscation of undeclared currency by customs authorities.
2. Imposition of personal penalty on the individual.
3. Appeal against the orders of the Commissioner of Customs (Appeals).
4. Request for redemption of confiscated currency under Section 125 of the Customs Act, 1962.

Absolute Confiscation of Undeclared Currency:
The case involved an individual who failed to declare Indian currency while traveling abroad, resulting in the confiscation of the undeclared amount by the customs authorities. The applicant contested the absolute confiscation, arguing that it was excessive and harsh. However, the government observed that the currency was concealed and attempted to be exported illegally. The applicant admitted to the violation and non-declaration, leading to the conclusion that the confiscation and penalty were justified.

Imposition of Personal Penalty:
In addition to the confiscation, a personal penalty was imposed on the individual for the violation. The government upheld the imposition of the penalty, stating that it was reasonable based on the circumstances of the case. The decision to maintain the penalty was supported by the acknowledgment of the violation by the applicant and the seriousness of attempting to export currency illegally.

Appeal Against Commissioner of Customs (Appeals) Orders:
The applicant had initially filed an appeal before the Commissioner of Customs (Appeals), who rejected it. Subsequently, a revision application was filed before the Revisionary Authority challenging the decisions of the Commissioner of Customs (Appeals). The grounds for the revision included the argument that absolute confiscation was excessive and that redemption of the currency should be allowed based on precedents and legal provisions.

Request for Redemption of Confiscated Currency:
The applicant sought the redemption of the confiscated currency under Section 125 of the Customs Act, 1962. The government reviewed various case laws and precedents where courts and tribunals had allowed redemption of foreign currency under special circumstances. After considering the submissions, legal interpretations, and precedents, the government decided to allow the redemption of the confiscated Indian currency on payment of a redemption fine of Rs. 15,000 in lieu of confiscation, under Section 125 of the Customs Act, 1962. The personal penalty imposed by the lower authority was upheld as reasonable, leading to a modification in the impugned orders in favor of the applicant.

This detailed analysis of the judgment highlights the issues of absolute confiscation, imposition of personal penalty, appeal process, and the request for redemption of confiscated currency, providing a comprehensive overview of the legal proceedings and the final decision made by the government.