2005 (1) TMI 178 - AT - Customs

Summary

Issues:
1. Confiscation of foreign currency for non-declaration.
2. Imposition of excessive redemption fine and penalty.

Analysis:

Issue 1: Confiscation of foreign currency for non-declaration
The case involved passengers intercepted by customs officers for not declaring foreign currency. Miss Parvathy and the appellant were found carrying significant amounts of US dollars without proper declaration. While Miss Parvathy had a currency declaration form, the appellant failed to produce his. The customs officers detained the currency and later seized it under the Customs Act and Foreign Exchange Regulation Act. Show cause notices were issued, leading to an adjudication order confiscating the currency from the appellant and imposing penalties. The tribunal set aside the initial order and remanded the matter for reconsideration. Ultimately, the adjudicating authority confiscated the currency but allowed redemption on payment of a fine and imposed a penalty on the appellant.

Issue 2: Imposition of excessive redemption fine and penalty
The appellant challenged the redemption fine and penalty as excessively high. The appellant's counsel argued that the mistake of non-declaration was procedural and did not warrant such high penalties. Comparisons were drawn with a similar case where excessive fines were reduced. The Departmental Representative justified the penalties, highlighting the appellant's denial and lack of cooperation compared to another passenger who promptly disclosed the undeclared currency. The tribunal considered the previous appeal and the circumstances of the case. While acknowledging the procedural lapse, the tribunal noted the appellant's deliberate omission and criminal intent. The tribunal reduced the redemption fine and penalty but upheld the confiscation of the currency.

In conclusion, the tribunal modified the impugned order, reducing the redemption fine and penalty imposed on the appellant. The decision was based on the appellant's deliberate non-declaration of foreign currency, distinguishing his case from that of another passenger who cooperated with customs officers. The tribunal considered all facts and circumstances in determining the appropriate penalties, ultimately reducing the fine and penalty imposed on the appellant.