TaxTMI 
TaxTMI 
2014 (4) TMI 1123
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....emsp;Brief facts of the case are that the applicant was intercepted by the officers of the Air Intelligence Unit on her arrival at CSI Airport, Mumbai by flight No. EK-506 dated 29-8-2012 and clearance through the 'Green Channel'. Examination of her baggage resulted in the recovery and seizure of US $ 40,000 equivalent to Indian Rs. 24,05,490/-. The case was adjudicated by the Additional Commissioner of Customs (Airport), Mumbai ordering confiscation of the impugned currency under Section 111(d) of the Customs Act, 1962 with an option, under Section 125 of the ibid Act, to redeem them on payment of a fine of Rs. 4,00,000/-. Penalties of Rs. 75,000/- under Section 112(a) and Rs. 25,000/- under Section 114AA of the said Act were also imposed ....
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.... sub-section (1) of Section 125 of the Customs Act, 1962. In view of the above, it is submitted that the appellate authority herself agreed that the provision do not prescribed any specific procedure to be followed in the case of redemption fine. 4.2 It is not possible to adjust redemption fine of Rs. 4.00 lakhs from the refund claim for Rs. 24,05,490/- for want of accessibility to refundable amount which is already lying in Government account and not redeemed, therefore, redemption of refund amount is legally needed for its accessibility before sanctioning of the consequential refund claim. In other words the deposit of Rs. 4.00 lakhs (redemption fine) can only redeem the relevant claimed refund amount which is lying in Government a....
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....7. Government has carefully gone through the relevant case records, oral & written submissions and perused the impugned order-in-original and order-in-appeal. 8. On perusal of records, Government observes that in the instant case original authority confiscated the foreign currency US $ 40,000 = INR 24,05,490 under Section 111(d) of Customs Act, 1962 but allowed the same to be redeemed on payment of redemption fine of Rs. 4,00,000/-. A personal penalty of Rs. 75,000/- and Rs. 25,000/- was imposed under Sections 112(a) and 114AA respectively. Respondent passenger requested to refund the amount after deducting fine and penalty which was denied by original authority. Commissioner (Appeals) allowed the request of respondent. Now appli....