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Cus - Export of IC in excess of Rs.5000 – whether absolute confiscation of seized currency is warranted or whether offence is only procedural – since there are two contrary decisions, matter referred to Larger Bench: CESTAT

By TIOL News Service

MUMBAI, APR 01, 2014: ON an intelligence, the appellant was intercepted at the Sahar Airport, Mumbai on 08.12.2004 and during the search, Indian currency of Rs.24,17,500/- was found with the appellant which was not declared or permitted by RBI for export.

Therefore, the proceedings were initiated against the appellant and the Commissioner of Customs (Airport) ordered absolute confiscation of Indian currency and also imposed a penalty of Rs.2 lakhs.

Aggrieved from the said order, the appellant is before the CESTAT.

Relying on the decision in the case of Amanulah Abul Hassan - (2009-TIOL-1084-CESTAT-MAD), the appellant submits that the violation is to be considered procedural in nature and, therefore, the order of absolute confiscation is to be set aside and the Indian currency is allowed to be redeemed on payment of fine and penalty.

The Revenue representative opposed the said submission by adverting to the CESTAT, WZB decision in Harish Muljimal Gandhi - (2012-TIOL-2051-CESTAT-MUM) wherein the Bench has held that the absolute confiscation of currency is correct. Inasmuch as there is no infirmity in the order passed by the CC(Customs) and same is required to be upheld.

The Member (Judicial) observed –

"5. As there are two contrary decisions before me, therefore, it would be in the interest of justice to refer the matter to the Larger Bench to decide the following issue.

In case a person attempted to export Indian currency outside India without permission of RBI more than Rs.5000/-, in that case whether absolute confiscation is correct or Indian currency can be redeemed by imposition of Redemption Fine and penalty.

6. Registry is directed to place the file before the Hon'ble President for forming the Larger Bench to decide the issue."

In passing: The CBEC ‘Guide for Travellers' [as on 22.05.2013] under the head ‘Other Information' mentions – 5. Export of Indian Currency is strictly prohibited . However Indian residents when they go abroad are allowed to take with them Indian currency not exceeding Rs.7,500/-.

(See 2014-TIOL-488-CESTAT-MUM)


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