9911796707
TMI Blog2007 (4) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... possessed any foreign currency in his baggage, had replied in the negative. On the examination of the baggage of the passenger, the officers recovered foreign currency of value Rs. 24,54,580/- and Indian currency value of Rs. 32,500/-. These were seized as the passenger had not declared them and had concealed them in his baggage. In the statement recorded from him immediately after seizure, Slid T. Soundararajan deposed that he had made three visits to Vietnam in 2004 and 2005 and had not brought back any foreign currency. He had bought 53,000 US $ from various person in and around his native town and had decided to carry the currency to part finance purchase of used excavators with unaccounted money as desired by their foreign suppliers. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s reiterated. Adjudicating the Show Cause Notice issued in the wake of seizure of Indian/foreign currencies which had been kept concealed in the baggage of Shri T. Soundararajan and not declared to the customs authorities, the Commissioner found that Shri T. Soundararjan had attempted to smuggle out Indian currency and foreign currencies concealing the same in his baggage in contravention of Sections 77 79 of the Customs Act and provisions of Foreign Trade Policy 2004 - 09, Foreign Trade (Development Regulations) Act, 1992 and Foreign Exchange Management Act, 1990. Shri T. Soundararajan had acquired foreign currency illegally. Following the above findings the Commissioner ordered absolute confiscation of foreign currency of US $ 53,500 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant was on his way to a foreign country for business purpose i.e. purchase of earthmovers. The lower authority ought not have confiscated the currencies absolutely for non declaration, as foreign currencies were not prohibited goods. It was also submitted that the currencies were not concealed and that the confiscated currencies should have been allowed to be redeemed. Several case laws were cited in support of his plea that it was mandatory for the adjudicating authority to allow the impugned goods to be redeemed on payment of fine. 3. Heard both sides. We have considered grounds raised in the appeal against the impugned order and the oral submissions made by both sides. In the statement recorded immediately after seizure of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal made the following observations : "…….The undeclared foreign currency is no doubt liable to be confiscated, but since the import of the currency by a passenger especially by a NRI, is not prohibited, the adjudicating authority has no discretion but to allow the goods to be released on payment of Redemption Fine. This was also the view of the Co-ordinate Mumbai bench in the case of Felix Dares Fernandes v. CC, ACC, Mumbai (supra) wherein it has been held that undeclared foreign currency found with appellant on his departure to Dubai, although its confiscation is sustainable but the same is required to be released on payment of fine in terms of Section 125 of the Customs Ad, 1962." The Tribunal in that case remanded the case t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. We therefore, while upholding the orders of confiscation, permit redemption of the foreign exchange on payment of fine in lieu of confiscation of Rs. 4,00,000/-. No reduction is warranted in the quantum of penalty. On redemption the appellants would be required to follow the requirements of law in possessing and/or dealing with or disposing off the currency." The above judicial authorities amply establish that the appellant is entitled to redeem the confiscated currencies on payment of appropriate fine. Accordingly, we remand the matter to the original authority to adjudicate the contraventions afresh offering an option to the appellant to redeem the confiscated goods on pay of a reasonable fine to be determined by him. He will also de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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