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TMI Blog2009 (4) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... n his zipper handbag was found to contain traveller's cheques of various denominations totaling to £ 60,000/- and his waist-pouch was found to contain £ 8,000/- in various denominations. The foreign currency totaling to £ 68,000/-, equivalent to Indian rupees 51.68 lakhs, was seized under a panchnama by the officers who believed that the same had been smuggled into India and was liable to confiscation under Section 111 of the Customs Act. A statement of the appellant was also recorded on the same day under Section 108 of the Customs Act, wherein he stated that he had brought the currency for the purpose of buying some property and starting some business in Goa. He further stated that he was not aware of the regulations and hence did not dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. It ordered confiscation of the foreign currency under Section 111(d), (m) and (o) of the Customs Act, with option for redemption against payment of fine of Rs. 10,00,000/-. It also imposed personal penalty of Rs. 10,00,000/- on the appellant under Section 112(a) of the Act. The present appeal is directed against the Commissioner's order. 2. The learned counsel has reiterated the averments contained in the appellant's reply to the show-cause notice. He has argued that, as there is no prohibition against import of foreign currency into India, clause (d) of Section 111 of the Customs Act is not applicable. He has further argued that clauses (m) and (o) of the said section are also inapplicable inasmuch as the foreign currency is not dutia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he chose not to declare the foreign currency which was brought in such a large measure. The belated declaration made by him is no declaration for purposes of Section 77 and, therefore, the breach of Section 77 by the appellant has continued ever since the date of his arrival in India. The counsel has argued that Section 111(d) of the Customs Act is not applicable to the facts of this case. This plea has to be considered with reference to Regulation 6 of the Foreign Exchange Management (Export and Import of Currency) Regulations, 2000. According to this provision, a person may bring into India from any place outside India foreign currency without any limit, provided that it shall not be necessary to make declaration where the aggregate valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut declaration under Section 77 of the Customs Act. This mandatory condition attached to import of foreign currency was not complied with by the appellant and, therefore, the currency became liable for confiscation under Section 111(o) of the Act. The confiscation of the currency can only be sustained and it is ordered accordingly. It goes without saying that the appellant, by his omission to declare the currency under Section 77 of the Customs Act read with Regulation 6 ibid, rendered it liable to confiscation and, therefore, he attracted a penalty under Section 112(a) of the Act. However, the quanta of fine and penalty determined by the Commissioner appear to be harsh in the facts and circumstances of this case. The total value of the cur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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