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2010 (1) TMI 610 - HC - FEMASeizure of sale proceeds of foreign currency – Respondents sold foreign currency to another full-fledged money changer duly licensed by the RBI against pay orders received from them - pay orders received were credited into the account of the respondent - DRI effected the seizure of the credit balance lying in the credit of the respondent – respondent themselves were not involved in the smuggling activities of selling of foreign currency – Held that: - if one turns to the findings recorded by the Tribunal, the Tribunal was perfectly justified in holding that the order of the Commissioner ordering confiscation was the order in contradiction. At one stage, the Commissioner has rightly interpreted Section 121 of the Act holding that it can only be applied to the immediate proceeds of the goods smuggled. However, while applying the provisions of Section 121 to the factual aspects of the case, the Commissioner committed an error which was rightly spotted by the Tribunal. The Tribunal was perfectly justified in holding that the amounts seized which was lying in the bank could not be considered to be a sale proceeds of the smuggled foreign currency.
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