2000 (8) TMI 104 - HC - Customs

Summary

Issues:
Challenge to order under Section 129DD of the Customs Act, 1962 allowing redemption of foreign currencies on payment of fine. Interpretation of mens rea in the case of undeclared foreign currencies possession. Determination of NRI status and valuation of foreign currencies. Justification of redemption fine amount.

Analysis:
The judgment pertains to a writ petition challenging an order under Section 129DD of the Customs Act, 1962, allowing redemption of foreign currencies upon payment of a fine. The petitioner, intercepted while boarding a flight to Dubai, was found with undeclared foreign currencies equivalent to US$ 5234. The Additional Commissioner of Customs confiscated the currencies and imposed a penalty of Rs. 5,000. The petitioner, claiming lack of mens rea and voluntary declaration, appealed to the Commissioner of Customs (Appeals), citing a precedent. However, the appellate authority upheld the confiscation and penalty, noting the proper valuation and the petitioner's frequent travel status.

The judgment further delves into the petitioner's claim of being a non-resident Indian (NRI), which was refuted based on the valuation of foreign currencies and the absence of evidence supporting the NRI status. The Revisional Authority upheld the decision, rejecting the petitioner's voluntary declaration defense and emphasizing his awareness of foreign currency regulations. While the petitioner argued for a lower redemption fine due to his belief about the currency amount and NRI status, the court found the NRI status unestablished and the redemption fine excessive.

In its final analysis, the court acknowledged the lack of bona fides and upheld the NRI status determination. However, it found the redemption fine of Rs. 55,000 heavy considering the circumstances. Consequently, the court reduced the redemption fine to Rs. 25,000, balancing the interests of justice with the value of the seized currencies. The judgment highlights the importance of factual findings, NRI status determination, and the discretion to adjust redemption fines based on individual case specifics.