The Delhi High Court directed the Customs Commissioner to release amount after realising redemption fine and penalty on seizure of foreign currency.
The petitioner is a foreign national of Turkmenistan. A Lady Customs Officer conducted the personal baggage search of the petitioner which led to recovery of USD 18500/-. The petitioner failed to produce any documentary evidence for the legal possession and export of the recovered foreign currency, said foreign currency was then seized under Section 110 of the Customs Act, 1962. Subsequently, the recovered foreign currency was deposited with Central Bank of India.
The counsel for the petitioner has submitted that due to Covid Pandemic and Lockdown in March 2020, petitioner was stranded, 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 limitation period in all the matters till 31.03.2022 and that since thereafter petitioner called the respondent’s office on phone several times and also sent a letter dated 02.06.2023 for allowing the redemption of her seized foreign currency, but her request has not been accepted.
The counsel for the respondents argued that the adjudicating authority had given an option of redemption of goods to the petitioner upon the payment of redemption fine and such offer of redemption was valid only for a period of three months from the date of issuance of the order. It is submitted that the petitioner did not avail 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 Ravinder Dudeja and Justice Sanjeev Sachdeva observed that “The seized currency is already with the respondent and in paragraph (iv) of Order-in-Original, there is a clear direction for realization of the redemption fine and the penalty collectively amounting to Rs. 5,20,000/- from the total amount of Rs. 13,07,950/- and for the release of the remaining amount of Rs. 7,87,950/- to the petitioner. Since the currency was already lying with the department and only balance amount was to be released after adjusting the redemption fine and penalty, no further option was to be exercised by the petitioner.”
“In view of the above, we find no justification for not releasing the money in terms of the Order-in-Original dated 28.01.2020. 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 a period of two weeks from today” the Bench concluded
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