The Customs, Excises, Service Taxes Appellate Tribunal (CESTAT), Ahmedabad Bench while releasing confiscated Currency by imposing Fine held that the bonafide export of foreign currency was without the permission of Reserve Bank of India (RBI).
The appellants, Mr Rajesh Kumar Ishwar Parikh and Mr Ashish Kumar Daya Bhai Patel are partners in M/s. Jaylaxmi PolyPlast which is engaged in manufacture of PP/HDPE woven bags.
The appellants were travelling to Sharjah, Dubai. On the basis of information the appellants were searched and their baggage was brought back for inspection. During the inspection of the luggage of the appellant 4000 USD, 24788 USD and 335 Dirhams were found to be in the possession of the appellant Mr Rajesh Kumar Ishwar Parikh.
The currency notes were valued collectively at INR 16,33,228. Similarly, 4000 USD, 9000 USD and 115 Dirhams were also found to be in possession of appellant Shri Ashish Kumar Dayabhai Patel which were collectively valued at INR 8,55,474. The Currencies were seized under the belief that it is liable for confiscation under the provision of Customs Act, 1962.
As regards the source of the money for buying foreign currency the appellant stated that the amount was available as cash in hand in the balance sheet of Shubh Laxmi Enterprise another partnership concern of which the appellants are partners.
The Tribunal consisting of Ramesh Nair noted that as per the applicant’s statements that they were taking this foreign currency for business purposes which is otherwise permitted by the Reserve Bank of India.
Therefore, the CESTAT held that it cannot be said that the appellant had any malafide intention to export the foreign currency as they do not have any gain even if permission is not obtained.
The CESTAT held that the appellant is entitled for release of foreign currencies on payment of fine.
“I am of the view that the penalty imposed on both the appellants are very harsh and deserves to be reduced substantially. Accordingly, I reduce the penalty on Mr. Rajesh Kumar Ishwar Parikh to Rs.1 Lac. and in respect of Mr. Ashish Kumar Dahyabhai Patel the penalty is reduced to Rs.50,000,” the tribunal said.
Subscribe Taxscan Premium to view the Judgment
