2022 (12) TMI 62 - SCH - Customs

Smuggling - foreign currency - absolute confiscation - penalty - compounding of offence under Section 137 of the Customs Act, 1962 - HELD THAT - Taking note of the totality of facts and circumstances of the case, more particularly the fact that the foreign currency amounting to Rs.65,00,000/- has already been confiscated absolutely and the fair submissions made on behalf of the appellant, we are inclined to accept the offer made by her i.e., of depositing Rs.6,50,000/- being the entire amount of penalty as per the Order-in-original dated 08.02.2022 and then, a sum of Rs.1,00,000/- towards compounding of offence under Section 137 of the Customs Act, 1962. It is not found necessary or expedient to relegate the appellant to the process of hearing before the Commissioner of Customs; rather we are of the view that interest of justice shall be served by modification of the order in terms of the proposition advanced on behalf of the appellant. Appeal allowed in part.

Summary

Issues:
1. Compounding of the entire offence committed by the appellant.

Analysis:
The appellant was found carrying a significant amount of foreign currency while boarding a flight, leading to legal proceedings. The appellant was initially granted permission to travel abroad by the CMM, Patiala House Courts, New Delhi, with certain conditions. However, this order was later set aside by the District and Sessions Judge, Delhi. The High Court of Delhi eventually allowed the appellant to travel abroad on specific terms, including a monetary deposit requirement, which the appellant failed to fulfill. Subsequently, a show cause notice was issued, resulting in the absolute confiscation of the foreign currency and a penalty being imposed. The matter reached the Supreme Court with a limited notice to explore the possibility of compounding the entire offence.

The Chief Commissioner of Customs proposed terms for compounding the offence, including depositing the penalty amount, forfeiting the confiscated currency, and fulfilling conditions under the Customs Act. The appellant submitted an undertaking, acknowledging the situation, expressing remorse, and agreeing to pay the penalty and compounding amount. Considering the circumstances and the appellant's submissions, the Supreme Court accepted the offer of payment, acknowledging the confiscation of the currency and the appellant's willingness to comply with the penalty and compounding requirements.

The Court noted the appellant's situation, the confiscation of the currency, and the appellant's offer to pay the penalty and compounding amount. The Additional Solicitor General supported the order, recognizing the confiscation and the appellant's payment commitment. In light of the circumstances, the Court found it unnecessary to refer the matter back to the Commissioner of Customs and deemed it just to modify the order based on the appellant's proposal. Consequently, the Court partially allowed the appeal, accepting the terms proposed by the appellant, subject to compliance within four weeks.

In conclusion, the Court granted the appellant's request for reduction of the compounding amount, considering the peculiar circumstances of the case. The appellant was given four weeks to fulfill the requirements, emphasizing that the order was specific to this case's unique situation.