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TMI Blog2021 (2) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... AT), Chennai in Final Order No.1403 of 2008. 2. The appeal was admitted on 04.12.2009 on the following substantial question of law: "1. Whether the Tribunal was right in granting the benefit of redemption based on its earlier decisions by ignoring the fact that in the cases cited by CESTAT, the goods confiscated were only foreign currencies and not Travellers Cheques hence the above fact has lost sight of the second respondent?" 3. We have heard Mr.A.P.Srinivas, learned Senior Standing Counsel appearing for the appellant. 4. Though the respondents were initially represented by a counsel, subsequently they withdrew their appearance and the Court had ordered notice, which was not served and therefore, substituted service was ordered and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of foreign currency without the general or special permission of the Reserve Bank of India. Regulation 7 deals with Export of foreign exchange and currency notes. It is relevant to extract both the Regulations, which are as follows: "Prohibition on export and import of foreign currency. 5. Except as otherwise provided in these regulations, no person shall, without the general or special permission of the Reserve Bank, export or send out of India, or import or bring into India, any foreign currency. 7. Export of foreign exchange and currency notes. (1) An authorized person may send out of India foreign currency acquired in normal course of business. (2) any person may take or send out of India, - (i) cheques drawn on foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t a special or general permission of the Reserve Bank of India and this is in violation of the Rules. The fact that it was procured from persons other than authorized person as specified under the FEMA, makes the goods liable for confiscation in view of the above-said prohibition. Therefore, the Original Authority was justified in ordering absolute confiscation of the currency. The key word in Regulation 5 is prohibition of import and export of foreign currency. The exception is that special or general permission should be obtained from the Reserve Bank of India, which the passenger has not obtained and therefore the order of absolute confiscation is justified in respect of goods prohibited for export, namely, foreign currency. 14. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Rules, 2000. The passenger, in this case, attempted to take the money out of India without a proper declaration and has not obtained from an authorized person, thereby, he has violated the Foreign Exchange Management (Export and Import of Currency) Regulations, 2000. Therefore, the Department was justified in rightly invoking the said provision. The Tribunal, without adverting to the prohibition imposed under Regulation 5 of the Foreign Exchange Management (Export and Import of Currency) Regulations, 2000 has come to the erroneous conclusion that the amount not exceeding 25,000 US $ may be freely taken out of India. If both the Rules and Regulations are properly applied to the facts of the present case, it will be evident that the first r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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