1987 (12) TMI 183 - AT - Central Excise

Summary

Issues:
1. Confiscation of Indian currency under Section 121 of the Customs Act, 1962.
2. Imposition of penalty under Section 112 of the Act.
3. Validity of inculpatory statements and retraction by the appellant.
4. Claim of currency ownership by various individuals.
5. Compliance with procedural requirements in issuing show cause notices.
6. Consideration of redemption of confiscated currency.
7. Reduction of penalty imposed.

Analysis:

1. The judgment pertains to an appeal against the confiscation of Indian currency worth Rs. 1,80,000 under Section 121 of the Customs Act, 1962, and the imposition of a penalty of Rs. 6,000 on the appellant under Section 112 of the Act. The currency was seized from the appellant's possession, with authorities suspecting it to be the sale proceeds of contraband gold.

2. The appellant's counsel argued that the inculpatory statements made by the appellant were not voluntary and true, citing retraction at the earliest opportunity. Additionally, it was contended that the claims of various individuals regarding the currency were not properly investigated, and the penalty imposed lacked specific sub-section references.

3. The Department, represented by the learned D.R., asserted that the appellant's retraction of statements was belated and unsupported. The recovery of a chit mentioning "7 bits" was deemed corroborative evidence of the appellant's involvement in selling gold bars for the seized currency.

4. The Tribunal found that the statements made by the appellant were voluntary and true, dismissing the argument of coercion. The chit recovered supported the connection between the currency and contraband gold. The delayed claims of ownership by other individuals were deemed unreliable, as they surfaced after a significant period post-seizure.

5. The Tribunal determined that the show cause notice adequately outlined the charges against the appellant, despite lacking specific sub-section references. The appellant's participation in the proceedings without objection indicated comprehension of the charges, negating any prejudice due to the omission.

6. Regarding the redemption of the confiscated currency, the Tribunal declined the appellant's request, affirming the currency's link to contraband gold. Citing precedents, the Tribunal reduced the penalty from Rs. 6,000 to Rs. 1,000, maintaining the confiscation but adjusting the penalty amount.

7. The judgment concluded by dismissing the appeal, except for the modified penalty reduction. The decision upheld the confiscation of the currency based on the appellant's statements and the denial of redemption due to the established connection to contraband activities.