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Issues: Attempted illegal export of Indian currencies, interpretation of FERA Act, violation of legal provisions, absolute confiscation of currency, redemption fine.
Interpretation of FERA Act: The case involved two individuals intercepted at the airport with significant amounts of Indian currency intended for a business transaction in Bhutan. The Joint Commissioner of Customs concluded that the transaction was legitimate under the trade agreement between India and Bhutan and released the currency. However, the Revenue appealed, arguing that taking Indian cash out of the country was not permissible under the Reserve Bank Notification and the Indo-Bhutan Treaty. The Revenue contended that transactions involving Indian Rupees should be through negotiable instruments, not cash, as per FERA provisions. The Commissioner (Appeals) agreed with this interpretation, emphasizing that the law did not allow cash transactions in such scenarios. Violation of Legal Provisions: The key argument revolved around the legality of taking Indian currency out of the country without proper authorization. The Revenue maintained that the individuals exceeded the limit set by the Reserve Bank Notification, which only permitted taking a limited amount of Indian currency to Nepal. The Commissioner (Appeals) highlighted that the law did not authorize cash dealings in such cross-border transactions, emphasizing the need for negotiable instruments. The judgment stressed that the individuals violated the legal provisions by attempting to export Indian currency beyond the specified limit, as outlined in the FERA Act and related notifications. Absolute Confiscation and Redemption Fine: The appellants contended that they believed the cash export was legitimate for their business obligations with Bhutanese nationals and requested the release of the currency with a redemption fine. The Assistant Commissioner had already considered their business transaction details and decided against absolute confiscation. The final judgment converted the confiscation into an option for the appellants to redeem the currency by paying a redemption fine of Rs. 1,50,000 for one individual and Rs. 50,000 for the other. This decision balanced the need for enforcing legal provisions while acknowledging the appellants' business intentions, providing a compromise solution for the parties involved.
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