2007 (4) TMI 167 - AT - Customs

Concealment of Indian and foreign currency in baggage Mahazar and statement of accused(appellant ) are main evident against him Appellant is entitled to redeem the confiscated currencies on payment of appropriate fine Matter remanded for quantification of fine and penalty

Summary

Issues:
1. Confiscation of foreign and Indian currencies and imposition of penalty under Customs Act.
2. Challenge against the confiscation and penalty.
3. Interpretation of Foreign Exchange Management Regulations.
4. Consideration of case laws on redemption of confiscated currencies.

Analysis:
1. The case involved the confiscation of foreign and Indian currencies from a passenger at the International Airport, Chennai, who had concealed the currencies in his baggage without declaring them to customs authorities. The Commissioner found the passenger guilty of attempting to smuggle out currencies, leading to the absolute confiscation of the currencies under relevant sections of the Customs Act, 1962, and imposition of a penalty.

2. The appellant challenged the confiscation and penalty, arguing that the export of foreign exchange was permissible under Foreign Exchange Management Regulations, which did not impose limits on the export of foreign currency. The appellant contended that the confiscated currencies should have been allowed to be redeemed instead of absolute confiscation, citing various case laws supporting the redemption of seized goods on payment of fines.

3. The appellate tribunal considered the statements made by the appellant admitting to acquiring the currencies illegally and intending to use them for undisclosed purposes. The tribunal upheld the Commissioner's decision of confiscation based on the concealment of currencies in the baggage, as evidenced by the mahazar. However, the tribunal acknowledged the appellant's right to redeem the confiscated currencies based on previous decisions allowing redemption of seized currencies on payment of fines.

4. Referring to previous judgments, the tribunal emphasized the possibility of redeeming confiscated currencies on payment of appropriate fines. Citing specific cases where redemption was permitted by the Government of India, the tribunal remanded the matter to the original authority to reevaluate the contraventions and offer the appellant the option to redeem the confiscated goods on payment of a reasonable fine, along with determining a fresh penalty amount.

In conclusion, the appeal was allowed by way of remand, granting the appellant the opportunity to redeem the confiscated currencies upon payment of a fine, as supported by legal precedents and regulations governing foreign exchange management.