2024 (1) TMI 740 - HC - Customs

Seeking direction for execution of the Adjudication Order-in-Original - allowing the redemption of the seized foreign currency - HELD THAT - Section 125 of the Customs Act vests discretion in the authority to levy fine in lieu of confiscation. Reading of Section 125 (3), makes it clear that an option has to be given to the owner of the goods to pay fine in lieu of confiscation and such option has to be exercised within a period of 120 days from the date of option. Ordinarily the Adjudicating Officer needs to give option to the owner of the goods to pay fine in lieu of the confiscation and if such fine is not paid within a period of 120 days, such option will become void. But the goods seized in the present case are nothing else but foreign currency. The seized currency is already with the respondent and in paragraph (iv) of Order-in-Original, there is a clear direction for realization of the redemption fine and the penalty collectively amounting to Rs. 5,20,000/- from the total amount of Rs. 13,07,950/- and for the release of the remaining amount of Rs. 7,87,950/- to the petitioner. Since the currency was already lying with the department and only balance amount was to be released after adjusting the redemption fine and penalty, no further option was to be exercised by the petitioner. There are no justification for not releasing the money in terms of the Order-in-Original dated 28.01.2020 - Petition is allowed with a direction to the respondent to release the remaining amount after realizing the redemption fine and penalty from the seized foreign currency within a period of two weeks from today.

Summary

Issues:
The judgment involves the execution of an Adjudication Order-in-Original regarding the redemption of seized foreign currency, the validity of the redemption offer period, and the petitioner's request for release of the currency.

Execution of Adjudication Order:
The petitioner, a foreign national, was intercepted at the airport with USD 18500 in her possession, leading to the seizure of the currency under Section 110 of the Customs Act. The Adjudication Order-in-Original allowed the redemption of the currency on payment of a fine and imposed a penalty under Sections 125 and 114 of the Customs Act, respectively. The petitioner requested redemption after deducting the penalty, but the respondent did not act, prompting the Writ Petition.

Validity of Redemption Offer Period:
The petitioner argued that due to the Covid-19 pandemic and subsequent lockdown, she was unable to redeem the currency within the stipulated three-month period. The respondent contended that the redemption offer was valid only for three months from the date of the order, and the statutory limit had expired, justifying dismissal of the writ petition.

Petitioner's Request for Release:
The judgment emphasized Section 125 of the Customs Act, which grants discretion to levy fines in lieu of confiscation, with a 120-day period for payment. The Adjudicating Officer's order for redemption and penalty was not challenged. The judgment clarified that since the currency was already with the respondent and the redemption fine and penalty were to be deducted from the total amount, the petitioner had effectively exercised the redemption option. Therefore, the respondent was directed to release the remaining amount to the petitioner within two weeks.

This judgment resolves the issues surrounding the execution of the Adjudication Order, the validity of the redemption offer period, and the petitioner's request for release of the seized foreign currency, ensuring compliance with the provisions of the Customs Act.