The Customs, Excise and Service Tax Appellate Tribunal, Kolkata bench has held that currency is not goods liable to be seized under customs act and directs to redeem currency confiscated for violation of Foreign Exchange Management Act (FEMA) notification on payment of fine and penalty.
The appellant, Mr. Pankaj Mittal was found in the position of Indian currency and Thai Baht more than the permissible limit under FEMA notification no. FEMA 6 (R)/ RB-2015. The permissible amount of currency of Rs.25,000/- was returned to the appellant and the balance of Indian currency of Rs.1,61,500/- and Thai Baht of 8000/- were detained.
The Assistant Commissioner of Customs confiscated the seized currency and imposed a penalty of Rs. 89,500/- on the appellant under Section 114 of the Customs Act, 1962. On an appeal preferred by the appellant, the Commissioner (Appeals) upheld the order of the lower authority. Hence, filed an appeal before the CESTAT.
The counsel for the appellant submitted that the money was legally procured from his savings; he was not aware of the rules and regulations about the export of currency; when he was intercepted, he truthfully declared the currency available with him; his statement was not recorded immediately; relied upon documents for not provided along with show cause notice.
The Tribunal observed that the activity of the appellant was an attempt to export currency over and above the limit. Therefore, the provisions of Section 113 of the Customs Act, 1962, and Section 114 of the Customs Act are attractive. Further, the individual is traveling Abroad for his work and no business dealing was indicated.
The Coram of Mr. P.K. Choudhary, Member (Judicial) and Mr. P. Anjani Kumar, Member (Technical) has held that “we find that absolute confiscation is not warranted. Any punishment needs to be commensurate with the offence. Looking into the facts of the case and the submission of the appellants we are inclined to accept that the impugned currencies can be permitted to be redeemed on payment of a suitable fine and penalty”
Mr. S. K. Verma and Mr. Manish Mohan appeared on behalf of the appellant and respondent respectively.
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