2001 (9) TMI 191 - AT - Customs

Summary

Issues Involved:
1. Seizure of foreign currency at the airport and subsequent legal proceedings.
2. Contradictory statements by the accused individuals and their defense.
3. Confiscation of currency and imposition of penalties under Customs Act, 1962.

Summary:
1. The case involved the seizure of foreign currency from a passenger at the airport, suspected of smuggling, leading to legal actions under the Customs Act, 1962.
2. The accused individuals provided conflicting statements regarding the ownership and purpose of the seized currency, leading to a show cause notice for confiscation and penalties.
3. After hearings, the Tribunal upheld the confiscation of the currency but allowed redemption on payment of a fine for one appellant, while setting aside the penalty for the other based on conflicting evidence regarding his involvement.

Detailed Judgment:
1. The currency was seized at the airport, indicating an attempt to export it, justifying the application of relevant sections of the Customs Act. The defense of the currency being a gift was deemed invalid due to lack of initial declaration and inconsistent statements by the accused. Confiscation was upheld, but redemption was permitted on payment of a fine for one appellant.
2. The accused individuals provided contradictory statements, leading to doubts about their involvement in the smuggling attempt. While one appellant's penalty was upheld, the penalty on the other was set aside based on evidence contradicting his alleged role in the incident.

Conclusion:
The Tribunal upheld the confiscation of the currency but allowed redemption on payment of a fine for one appellant, while setting aside the penalty for the other based on conflicting evidence.