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2014 (1) TMI 1222 - CESTAT CHENNAIConfiscation under section 111(d) and under section 113(d) - Penalty u/s 112 and 114 - Illicit import and export of currency - Proceedings under Custom Act or FEMA - Held that:- Section 111(d)makes it amply clear that the goods are liable to confiscation under Customs Act if the goods are imported or attempted to be imported contrary to any prohibition under Customs Act or under any other law for the time being in force. So the prohibition imposed under Customs Act or any other law for the time being in force referred therein has to be a prohibition on import [prohibition on export in the case of section 113 (d)]. The prohibition in FEMA on trading and possession of foreign currency will not come within the scope of section 111(d) because this section deals with import and prohibitions on import and no other prohibition. Customs does have jurisdiction to seize the currency because there is clearly an attempt to import or export foreign exchange illegally and there is a prohibition on such import or export as per Regulation 5 of Foreign Exchange Management (Export and Import of Currency) Regulation 2000, issued in exercise of powers under section 6 (3) (g) of FEMA. But the situation in this case is quite different in as much as seizure was not when the attempt to illegally import or export was taking place. The proof of illegal import or export in this case is not reliable as already explained. Then it is only a case of contravening prohibition on dealing in foreign currency and holding such currencies which can be dealt with only under FEMA and not under Customs Act - Indian Currency equivalent of seized and confiscated currency is already released to the respondent and there is no chance a release of foreign currency to a person not authorized to hold foreign currency taking place as a result of this order - Decided against Revenue.
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