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Issues: Implementation of order for release of confiscated currency, credit of currency in Reserve Bank of India, property vesting in the Central Government upon confiscation, availability of currency to the applicant, exchange rate considerations, payment of interest.
Analysis: The case involved the implementation of an order by the Appellate Tribunal CEGAT, Madras for the release of US $6200 in foreign currency confiscated by the Additional Collector of Customs, Madras. The applicant had petitioned for the return of the currency following the Tribunal's order, citing delays and the production of a permit from the RBI authorizing the repatriation of the funds. The Tribunal noted that the currency had been credited to the Reserve Bank of India before their order, and only the equivalent of Rs. 59520 in US $ was available for repatriation. The delay in finalizing the refund claim was attributed to fluctuating exchange rates and correspondence with the RBI for a permit. The Tribunal expressed regret for not being informed earlier about the conversion of the currency into Indian rupees, which might have influenced their order. However, the Tribunal decided to address the implementation of the existing order. The Tribunal acknowledged that the currency had been confiscated and credited to the RBI before their order, as per the practice of the Custom House. It was highlighted that the property in the currency vested in the Central Government upon confiscation, and there was no impropriety in crediting it to the Government account. The Tribunal emphasized that the conversion took place before the Custom House was aware of the appeal to the Tribunal, and there was no stay on the confiscation order at that time. Referring to Section 126 of the Customs Act, the Tribunal justified the credit to the Government account. In light of the circumstances, the Tribunal deemed it just to make the US $6200 available to the applicant based on the exchange rate prevalent on the date of the Tribunal's order receipt by the Custom House. Any subsequent exchange rate variations impacting the currency quantum would be the responsibility of either the Department or the applicant. The Tribunal issued an order accordingly, addressing the availability of the currency to the applicant. Regarding the applicant's request for interest payment due to the delay, the Tribunal clarified that there was no provision in the Act for interest payment on sums due to an assessee or the Department. Interest was not charged in either direction, leading the Tribunal to deny the applicant's interest request. Lastly, the Tribunal set a timeline for the resolution of the issue within eight weeks from the date of their order, emphasizing the need for a prompt decision.
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