2016 (1) TMI 510 - AT - Customs

Levy of penalty - Redemption of confiscated currency - Trying to export Indian currency and foreign currency at the Airport - The appellant claimed that the said currency belong to one Shri Sabir and was to be handed over to one Shri Hazi Shaikh at Dubai. The said statement was later retracted and the appellant claimed that the money belonged to him. - Held that - Larger Bench has given full discretion to the proper officer to allow in respect of redemption fine and imposition of penalty. Each case is to be decided on its merit and therefore, two citations, one given by Revenue and another by appellant are of no avail as the facts are substantial different. In the instant case, it is noticed that the appellant has changed its stand regarding ownership of currency repeatedly. In his last statement dated 31.1.2005, he has not claimed ownership of the currency. It is seen from the impugned order that the appellant is a repeated offender and two cases have already been booked against the him, which are mentioned in para 114 of the impugned order. Further, it is noticed that the appellant had not challenged the confiscation per se. Further it is seen from the adjudication order that the proceedings in respect of Shri Sabir, who had apparently given this cash to the appellant and Shri Hazi Shaikh, who was supposed to receive the money in Dubai are still in abeyance. Considering the decision of the Larger Bench of the Tribunal and the facts that the appellant is a repeated offender and also the fact that the proceedings against Shri Sabir and Hazi Shaikh are in abeyance, it would be improper to allow redemption of seized currency. - levy of penalty also confirmed - Decided against the appellant.

Summary

Issues:
1. Confiscation of currency attempted to be exported without permission.
2. Claim of ownership and redemption of confiscated currency.
3. Application of penalty under Customs Act, 1962.

Issue 1: Confiscation of currency attempted to be exported without permission

The appellant was apprehended attempting to export Indian and foreign currency at the Airport. Initially, he claimed the money belonged to someone else but later retracted his statement, asserting the currency was his hard-earned money from a trip to Dubai. The currency was confiscated absolutely, and a penalty of Rs. 2 lakhs was imposed under Section 114(i) of the Customs Act, 1962. Proceedings against other individuals involved were kept in abeyance pending further investigation.

Issue 2: Claim of ownership and redemption of confiscated currency

The appellant argued for redemption of the currency based on a previous case and a decision of the Hon'ble Bombay High Court. The appellant contended that as the currency was seized from his possession, he should be allowed to redeem it upon payment of a redemption fine. However, the Tribunal noted the appellant's changing statements regarding ownership and his status as a repeat offender. The Tribunal referred to a Larger Bench decision allowing absolute confiscation of currency attempted to be exported without permission, emphasizing the discretion of the proper officer in each case.

Issue 3: Application of penalty under Customs Act, 1962

The Tribunal considered the penalty imposed on the appellant adequate, given his repeated offenses and the ongoing proceedings against other individuals involved. The Tribunal highlighted the appellant's failure to challenge the confiscation directly and the circumstances surrounding the case, leading to the dismissal of the appeal.

In conclusion, the Tribunal upheld the absolute confiscation of the currency attempted to be exported without permission, considering the appellant's changing statements, repeat offenses, and the pending proceedings against other individuals. The penalty imposed under the Customs Act, 1962 was deemed appropriate, leading to the dismissal of the appeal.