1997 (9) TMI 382 - AT - Customs

Summary

Issues:
Appeal against unjust confiscation of Indian Currency of Rs. 90,000 as sale proceeds of smuggled goods.

Detailed Analysis:

1. Confiscation of Indian Currency:
The appeal was filed against the order of the Addl. Commissioner of Customs confiscating Rs. 90,000 Indian Currency, alleged to be the sale proceeds of smuggled goods. The appellant argued that the currency was the balance of their money lending firm and was brought home as a security measure. The officers allegedly obtained a statement under duress, leading to the confiscation. The appellant contended that the currency was not from smuggled goods.

2. Arguments and Evidence:
The appellant's consultant argued that the seized watches and currency were not meant for commercial purposes and were acquired from legitimate sources. The appellant provided explanations and evidence to support the claim that the currency was not from smuggled goods. However, the Department relied on the appellant's admission under Sec. 108 of the Customs Act to justify the confiscation.

3. Legal Position and Decision:
The Tribunal considered Sec. 121 of the Customs Act, which deals with the confiscation of sale proceeds of smuggled goods. It was noted that without proof that the seized amount was from smuggled goods, it should be returned to the owner. The Tribunal found that the confiscation was solely based on the appellant's admission and lacked satisfactory evidence to link the currency to smuggled goods. Therefore, the appeal was allowed, and the appellant was entitled to the refund of Rs. 90,000.

4. Judgment and Order:
The Tribunal modified the impugned order, holding that the Indian Currency of Rs. 90,000 was not the sale proceeds of smuggled goods. The appellant was granted the refund of the seized amount, while the rest of the impugned order was confirmed. The decision emphasized the importance of substantiating claims with evidence and adhering to legal procedures in confiscation cases.

This detailed analysis highlights the key arguments, evidence, legal principles, and the ultimate decision of the Tribunal in the appeal against the confiscation of Indian Currency as sale proceeds of smuggled goods.