1998 (8) TMI 358 - AT - Customs

Summary

Issues:
1. Confiscation of currency under Section 121 of the Customs Act, 1962.
2. Justification of confiscation based on suspicious circumstances.
3. Interpretation of statements made by the appellant regarding the currency.
4. Challenge to liability of confiscation under Section 121.
5. Requirement of establishing currency as proceeds of sale of smuggled goods.
6. Authority for confiscation of sale proceeds of smuggled goods.

Analysis:

1. The case involved the confiscation of Rs. 4.5 lacs Indian currency carried by the appellant, which was seized by a Customs officer under Section 121 of the Customs Act, 1962. The Collector (Appeals) upheld the confiscation, leading to the appeal.

2. The departmental representative argued that the currency was found in extremely suspicious circumstances, as the appellant did not claim ownership, and no one came forward to claim it. Citing a previous Tribunal decision, the representative justified the confiscation based on these suspicious circumstances.

3. The appellant had made statements indicating that the money was given to him by a stranger to be handed over to someone named Manish, who was involved in smuggling activities. However, the appellant later retracted his admission and requested the return of the currency, raising questions about the interpretation of his statements.

4. The Tribunal clarified that the issue was not the liability of confiscation under Section 121 but the appellant's rights to the currency. The appellant's request for the return of the currency after retracting his admission was considered a distinguishing feature in this case.

5. The Tribunal emphasized the need to establish that the seized currency was actually the proceeds of a sale of identical smuggled goods, as per established legal precedent. Merely suspecting that the money was used to purchase smuggled goods was not sufficient to justify confiscation under Section 121.

6. The Tribunal concluded that suspicion alone and the lack of ownership claim by the appellant did not warrant confiscation under Section 121. The section specifically pertains to the confiscation of sale proceeds of smuggled goods, not unclaimed currency. Therefore, the currency was ordered to be returned to the appellant as the necessary consequence of this interpretation.