Redemption of Goods Denied based on Limitation Period u/s 125 of Customs Act: Delhi HC directs to Release Seized Currency [Read Order]

The Delhi High Court directed to release of the seized currency as there is no justification in the respondent’s holding that the payment has not been made and the option has lapsed. The respondents denied the redemption of goods by stating that the petitioner did not avail of the option within the prescribed period of three months or even 120 days as directed under Section 125 of the Customs Act, 1962. Oguljeren Hajyyeva, the Petitioner is a foreign national of Turkmenistan. After she had completed the immigration and boarding formalities, she was intercepted near Flight Gate No. 11 of the Departure Hall of T-3, IGI Airport. She was served with notice under Section 102 of the Customs Act, 1962 in the presence of independent Panchas and an interpreter informing therein that her search and examination of her baggage was required. She was informed that the same could be conducted in the presence of a Gazetted Officer or any Gazetted Lady Customs Officer. As per her consent, a Lady Customs Officer conducted the personal baggage search of the petitioner which led to the recovery of USD 18500/-. Petitioner failed to produce any documentary evidence for the legal possession and export of the recovered foreign currency and said the foreign currency was then seized under Section 110 of the Customs Act, 1962. Subsequently, the recovered foreign currency was deposited with the Central Bank of India, IGI Airport Branch vide office letter dated 22.08.2019. Show Cause Notice was served upon the petitioner. The petitioner stated that she did not have any knowledge of the legal provisions that the non-declaration and attempt to take the foreign currency out of India was unintentional and that the seized foreign currency may be released and the confiscation or the penal action may be waived off. The petitioner was allowed the redemption of the foreign currency on the payment of a redemption fine of Rs. 2,60,000/- under Section 125 of the Customs Act with the stipulation that the offer of redemption was valid only for three months from the date of issue of order. In addition, a penalty of Rs. 2,60,000/- was also imposed on the petitioner under Section 114 of the Customs Act. The petitioner has submitted that due to the COVID-19 pandemic and Lockdown in March 2020, the petitioner was stranded, and all the offices were shut due to which the petitioner could not get her seized foreign currency released. It was submitted that the Supreme Court in suo-moto proceedings, had ordered the extension of the limitation period in all the matters till 31.03.2022 and that since thereafter petitioner called the respondent’s office on the phone several times and also sent a letter for allowing the redemption of her seized foreign currency, but her request has not been accepted. Per contra, the counsel for the respondents has argued that the adjudicating authority had given an option of redemption of goods to the petitioner upon the payment of the redemption fine and such an offer of redemption was valid only for three months from the date of issuance of the order. It was submitted that the petitioner did not avail of the option within the prescribed period of three months or even 120 days as directed under Section 125 of the Customs Act. A division bench comprising Justice Sanjeev Sachdeva and Justice Ravinder Dudeja observed that “Since the currency was already lying with the department and only the balance amount was to be released after adjusting the redemption fine and penalty, no further option was to be exercised by the petitioner.” The Tribunal viewed that the deemed payment having been made, there is no justification in the respondent’s holding that the payment has not been made and the option has lapsed. The action of the respondents is accordingly not sustainable. The petition is allowed with a direction to the respondent to release the remaining amount after realizing the redemption fine and penalty from the seized foreign currency within two weeks from today. Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates

Redemption of Goods Denied based on Limitation Period u/s 125 of Customs Act: Delhi HC directs to Release Seized Currency [Read Order]

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