2013 (10) TMI 33 - AT - Customs

Penalty - Confiscation of foriegn currency - Held that - It is not disputed by the adjudicating authority that a person who is going abroad can carry USD 25000 with him. Therefore, the contention of the ld. Counsel is acceptable that redemption fine and penalties are on higher side as held by the tribunal in the case of Savier Poonolly (supra). Therefore, we are of the opinion that redemption fine and penalties are to be considered separately for each of the appellants. As Shri Rajesh Narendra Mewawalla was carrying USD 105,800 and Thai Baht 139,070 therefore, considering the quantum, we impose redemption fine of Rs.6 lakhs (Rupees Six lakhs) and reduced penalty to Rs. 3 lakhs (Rupees Three lakhs) on Shri Rajesh N. Mewawall under sec. 114(i) of the Customs Act, 1962. With regard to Shri Arun Ramlal Sura who was carrying USD 40,000/- and British Pounds 520 therefore, redemption find of Rs.1,00,000/- (Rupees One lakh) is imposed and penalty is reduced to Rs.50,000 - Shashikant Munshilal Katiyar was carrying USD 1100 which is within the permissible limit, therefore, no redemption fine is imposed on him and penalty is also dropped - Decided partly in favour of assessee.

Summary

Issues:
Appeal against confiscation of currencies and imposition of redemption fine and penalties.

Analysis:
The appellants appealed against an order where various currencies were confiscated and redemption fine and penalties were imposed. The incident occurred when the appellants were intercepted by customs officers before boarding a flight to Bangkok. Examination revealed that they were carrying Indian and foreign currencies, leading to allegations of smuggling. The adjudication order confirmed the confiscation of currencies worth Rs. 60,87,157, with redemption fine and penalties imposed on each appellant. The appellants contested the high redemption fine and penalties without disputing the smuggling allegations.

The appellant's advocate argued for a reduction in redemption fine and penalties based on a tribunal decision allowing carrying USD 25,000 for specific purposes. The Deputy Commissioner defended the impugned order, emphasizing the thorough consideration by the adjudicating authority. The tribunal acknowledged the permissible limit of carrying USD 25,000 abroad, agreeing that the redemption fine and penalties were excessive. Consequently, the tribunal decided to consider the penalties separately for each appellant.

For the appellant carrying USD 105,800 and Thai Baht 139,070, the tribunal imposed a redemption fine of Rs. 6 lakhs and reduced the penalty to Rs. 3 lakhs. The appellant with USD 40,000 and British Pounds 520 faced a redemption fine of Rs. 1,00,000 and a penalty of Rs. 50,000. In contrast, the appellant carrying USD 1100 within the permissible limit faced no redemption fine or penalty. As a result, the tribunal disposed of the appeals based on these considerations.