TMI Blog1994 (2) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... ir Post Mail by the appellants who are authorised dealers in foreign exchange, to their overseas offices arises for determination in the above appeal. 2. Initially the case of the Department as elaborated in the show cause notice was that the appellants, as per the conditions of the Licence issued to them by the Reserve Bank of India in terms of Section 6 of the FERA, 1973, are entitled to transfer of funds abroad against RBI permits by way of Demand Draft, Mail Transfer and Telegraphic Transfers on Thomas Cook s offices abroad. Even though the general permission had been granted by the RBI under Notification 36/76 RBI dated 10-5-1976 to authorised dealers to send out of India foreign currency in the form of currency notes, etc. which are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uisite declaration the Department alleged violation of Section 18(1) and that the currency was liable to confiscation under Section 113(i) of the Customs Act, 1962 in view of the provisions of Section 67 FERA, 1973. This charge has been upheld by the Collector of Customs, holding inter alia that the law requires a declaration with regard to export of currency by post parcels and in the absence of such declaration, the goods are prohibited goods liable to confiscation and that Section 13(2) under which the appellants are authorised to send out foreign currency and Section 18(1) are not mutually exclusive and they have to be read in conjunction. He also held that the provisions of Section 113(i) of the Customs Act are attracted in the cases o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... echnical violation, not warranting such a steep redemption fine and penalty. 5. Rebutting the contention of the learned DR, Shri Bhartiya submits that Sections 13 and 18 of the FERA, 1973 are to be read together and not independently of each other. He refers to notification of 1-1-1974 prohibiting the export by post of all goods to any place outside India (other than Nepal and Bhutan) without a declaration by the exporter containing details of full export value of the goods and submits that the proviso thereto, exempting goods the export of which in the opinion of the RBI does not involve in any transaction in foreign exchange and which the Reserve Bank has, by a general or special order, permitted to be exported without furnishing a decl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms of Section 2(22) of the Customs Act, 1962 and though the expression `goods has not been defined in the FERA, definition of `currency in Section 2(f) of the FERA which is an inclusive definition does not exclude goods as such. Therefore, the cantention that the currency is not goods within the meaning of Section 18(1) can t be accepted. Both currency and goods are dealt with under separate sections but this will not lead to the conclusion that currency is not goods . The prohibition regarding currency is contained in Section 18(1) and is imposed by a notification issued under this section. According to the Notification No. F1/67/EC/73-2, dated 1-1-1974 export by post of all the goods out of India is prohibited unless ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claration or requisite certificate or order is filed before them or accompanies the parcel. Admittedly the appellant has not complied with any of the conditions prescribed therein, thereby defeating the very purpose of Section 13 read with Section 18. There is nothing in Sections 13 and 18 to indicate that they are mutually exclusive. Our view in this regard is fortified by the requirement in proviso (c) to Notification No. F1/67/EC/73-2 dated 1-1-1974 of general or special order of waiver of declarations by the Reserve Bank of India. 7. In the light of the above discussion we uphold the finding of the adjudicating authority of contravention of Section 18(1) FERA and Section 82 of the Customs Act, 1962. The declaration under Section 82 b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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