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TMI Blog2014 (8) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... ase be allowed to redeem on payment of redemption fine and imposition of penalty - matter sent to referral banch. - C/65/08 - Mum - Misc. Order No. M/1280/2014-WZB/C-I(CSTB) - Dated:- 23-6-2014 - S.S.Kang , Ashok Jindal And P R Chandrasekharan, JJ . For the Appellant : Shri Anil Balani, Adv. For the Respondent : Shri M.S. Reddy, DC(AR) The Referral Bench has made the following references before us for consideration:- In case a person attempted to export Indian currency outside India without permission of RBI more than ₹ 5,000/-, in that case whether absolute confiscation is correct or Indian currency can be redeemed by imposition of redemption fine and penalty. 2. Heard both sides. 3. Shri Anil Balani, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely confiscated therefore it attracts the provision that the currency in question is prohibited under this Act or any other law for the time being in force. For importation or exportation of Indian currency there is no provision under the Customs Act, 1962 and the same has been regulated by Foreign Exchange Management Act, 1999. Regulation 3 of the Foreign Exchange Management Act (Export and Import of Currency) Regulations, 2000 deals with the question in hand and provides that any person resident in India may take outside India the currency notes of Government of India and RBI notes up to an amount not exceeding ₹ 10,000/- per person. Regulation 3(1)(2) provides that without prejudice to the provisions of sub-regulation (1), RBI may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Exchange Management (Export and Import of Currency) Regulations restricts a person not to carry more than ₹ 10,000/- of Indian currency outside India therefore this restriction is prohibition and if it is restricted there is a complete prohibition. Therefore, the adjudicating authority has rightly confiscated the impugned currency. By relying on the decision in the case of Sheikh Mohd. Omer vs. Collector of Customs, Calcutta and Others 1983(13)ELT 1439(SC), the learned A.R submits that in the said case the Hon'ble Apex Court has held that the provisions of import and export includes restricting or otherwise controlling all imports and exports. He further submits that the learned counsel has also relied on the decision of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exceeding ₹ 10,000/- per person. If the said person is willing to carry Indian currency more than ₹ 10,000/- outside India is required to seek permission from the RBI and the RBI being satisfied may grant permission to carry the Indian currency more than ₹ 10,000/- on certain terms and conditions. Therefore, as these Regulations are governed by Foreign Exchange Management Act, 1999, which puts restrictions on the person not to carry Indian currency more than ₹ 10,000/- without permission of the RBI. In this term, the Indian currency more than ₹ 10,000/- to take outside India is restricted goods. The case law, relied on by the learned Advocate in the case of Asian Food Industries (supra) wherein the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otherwise regulating export of goods but the Hon'ble Apex Court itself in the case of ShaikhMohd. Omer (supra) has clarified that every and all types of prohibition, whether complete or partial in includes restriction which is one type of provision. We further observed that in this case the Regulation are made under Foreign Exchange Management Act, 1999, for providing how much currency can be taken outside India without any restrictions. In this terms, we hold that the currency of more than ₹ 10,000/- sought to be taken outside India is prohibited goods. Therefore, the adjudicating authority has rightly confiscated the Indian currency of ₹ 24,17,500/-. The argument of the learned Advocate that the appellant may be allowed to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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