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2019 (11) TMI 70 - AT - CustomsSmuggling - Indian Currency - absolute confiscation - imposition of penalties u/s 114 of CA - HELD THAT:- The undisputed facts are that the Appellant Shri Vasant Kumar Khakkar entered into Dr. B.R. Ambedkar International airport, Nagpur with Indian currency of ₹ 22,50,000/- on 18.05.2009 on his way to Sharjah by taking on Flight No.G-9-410. It is pleaded by the Appellant that while screening of the baggage by CISF, the Indian currency was detected and on information to the Customs Department, the same was seized. Thus the argument by the learned Advocate for the Appellant that since the Appellant has not taken their boarding pass by checking-in, nor completed the security and reached the Customs counter, hence detection of currency at the stage of screening of the baggage could at best be considered as ‘preparation’ but not an ‘attempt’ to export of the Indian currency out of the country. Any goods attempted to be exported or brought within the limits of Customs area for the purpose of being exported, contrary to the any prohibition, would result into confiscation. In the present case, the goods have been brought into the airport by the Appellant Shri Vasant Kumar Khakkar with an intention to take the same to Sharjah. However, on being detected while screening the baggage by CISF, it is their argument that he has expressed his desire to return back instead of continuing his journey, but the customs authorities seized the same. Therefore, their plea that the action of the Appellant has remained at the stage of ‘preparation’ only and no attempt has been made to export the Indian currency out of India. Confiscation - HELD THAT:- Sub-sections (d) of Section 113 consists of two independent alternative situations viz. (1) the goods attempted to be exported and (2) or brought within the limits of any Customs area for the purpose of being exported. In the present case, undisputedly, both the conditions are present. The second situation prescribed under sub-section (d) is satisfied, inasmuch as both Shri Vasant Kumar Khakkar and Smt. Renuka Vasant Khakkar, in their respective statements submitted that the Indian currency was obtained by selling their jewellery by Shri Vasant Kumar Khakkar to Sharjah and for said purpose on 18.05.2009, the Indian currency was brought to Nagpur International airport a notified Customs area. Therefore, the confiscation of the Indian Currency of ₹ 22.50 lakhs under Section 113 (d) of the Customs Act, 1962 is justified. Penalty on the Appellant Shri Vasant Kumar Khakkar - HELD THAT:- There are enough material/evidence to come to the conclusion that Shri Vasant Kumar Khakkar has contravened the provisions of the Customs Act, 1962 and aware of the law being a frequent traveller that the Indian currency was carried by him in violation of Provisions of Section 113(d) of the Customs Act, 1962 read with Regulation 3 of Foreign Exchange Management (Export and Import of Currency) Regulations, 2000 framed under Section 6(3)(g) read with Section 47 of Foreign Exchange Management Act, 1999 - the quantum of penalty is however reduced. Penalty on Smt. Renuka Vasant Khakkar - HELD THAT:- There are no justification for imposition of penalty on her only on the ground that she was aware that her husband Shri Vasant Kumar Khakkar would be carrying ₹ 22.50 lakhs to Sharhah, when she was no way concerned in obtaining permission nor in any manner associated to carry the said Indian currency without seeking necessary permission from the appropriate authorities in compliance of various provisions of law necessary to carry huge amount of Indian currency to Sharjah - penalty on Smt.Renuka Vasant Khakkar is set aside. Appeal allowed in part.
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