9911796707
TMI Blog2007 (4) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... These were seized as the passenger had not declared them and had concealed them in his baggage. In the statement recorded from him immediately after seizure, Slid T. Soundararajan deposed that he had made three visits to Vietnam in 2004 and 2005 and had not brought back any foreign currency. He had bought 53,000 US $ from various person in and around his native town and had decided to carry the currency to part finance purchase of used excavators with unaccounted money as desired by their foreign suppliers. He had raised the required funds to buy foreign currency by taking loan from M/s. Jayapria Financiers, Neyveli. He did not have any documents to prove the licit acquisition of foreign and Indian currencies. The appellant was arrested. An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner found that Shri T. Soundararjan had attempted to smuggle out Indian currency and foreign currencies concealing the same in his baggage in contravention of Sections 77 & 79 of the Customs Act and provisions of Foreign Trade Policy 2004 - 09, Foreign Trade (Development & Regulations) Act, 1992 and Foreign Exchange Management Act, 1990. Shri T. Soundararajan had acquired foreign currency illegally. Following the above findings the Commissioner ordered absolute confiscation of foreign currency of US $ 53,500 equivalent to of Rs. 24,54,580/- and Indian currency of Rs. 32,500/-under Section 113(d), (h) and (i) of the Customs Act, 1962 and confiscated the articles found to have been used to conceal the currencies under Section 119 of the Custo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was also submitted that the currencies were not concealed and that the confiscated currencies should have been allowed to be redeemed. Several case laws were cited in support of his plea that it was mandatory for the adjudicating authority to allow the impugned goods to be redeemed on payment of fine. 3. Heard both sides. We have considered grounds raised in the appeal against the impugned order and the oral submissions made by both sides. In the statement recorded immediately after seizure of the impugned currencies, the appellant had admitted that the currencies had not been acquired through legal means; that he had intended to pay the same to the supplier of excavators he intended to purchase without showing part of the value in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to allow the goods to be released on payment of Redemption Fine. This was also the view of the Co-ordinate Mumbai bench in the case of Felix Dares Fernandes v. CC, ACC, Mumbai (supra) wherein it has been held that undeclared foreign currency found with appellant on his departure to Dubai, although its confiscation is sustainable but the same is required to be released on payment of fine in terms of Section 125 of the Customs Ad, 1962." The Tribunal in that case remanded the case to the Commissioner for re-consideration of the pleas raised by the appellants and for considering release of the seized foreign currency on payment of redemption fine In Felix Dares Fernandes v. CC, ACC, Mumbai (supra) the Tribunal made the following observation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow the requirements of law in possessing and/or dealing with or disposing off the currency."
The above judicial authorities amply establish that the appellant is entitled to redeem the confiscated currencies on payment of appropriate fine. Accordingly, we remand the matter to the original authority to adjudicate the contraventions afresh offering an option to the appellant to redeem the confiscated goods on pay of a reasonable fine to be determined by him. He will also decide the penalty amount to be imposed on the appellant afresh. Needless to say that the appellant shall be given a reasonable opportunity of being heard in person.
6. Appeal stands allowed by way of remand.
(Operative part pronounced in open court on 19-4-2007) X X X X Extracts X X X X X X X X Extracts X X X X
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