Customs Seizure 3 km Away from India-Bangladesh Border: CESTAT Cites Contradictions in SCN, Orders Release of ₹15 Lakh [Read Order]

The Kolkata Bench of the Customs,Tax Appellate Tribunal Tax Appellate Tribunal (CESTAT) ruled that the seizure of Indian currency was not sustainable when contradictions existed in the show causenotice and the seizure location was away from the India-Bangladesh border.

The case began when Customs Preventive officers at Sonamura, Tripura, acting on intelligence, intercepted one Ali Hossain on 20 November 2019 and recovered Rs. 15,00,000 in Indian currency. The department alleged that the cash was meant for illegal export to Bangladesh through the unfenced Rabindranagar border.

During investigation, Ali Hossain stated that the money belonged to Manir Hossain, the appellant. Based on this, the adjudicating authority ordered absolute confiscation of the seized amount and imposed a penalty of Rs. 1,15,000 under Section 114 of the Customs Act, 1962.

The appellant’s counsel argued that the seizure did not take place near the border but at Rabindranagar Bazar, which is 3 km away from the Bangladesh border. A map of the area was produced to support this claim.

They also argued that the show cause notice contained contradictory statements, with one part recording seizure at 17:45 hours near the border and another part stating that a person was apprehended at 18:40 hours moving quickly towards the border.

The revenue counsel relied on the adjudication order, statements, and panchnama to argue that the seizure was valid and that there was clear intent to smuggle the currency into Bangladesh.

The single-member bench comprising Ashok Jindal (Judicial Member) observed that the show cause notice itself recorded contradictory times and locations of seizure. The tribunal further observed that Rabindranagar is 3 km away from the border, making the allegation of imminent smuggling doubtful.

The tribunal pointed out that the benefit of doubt must go to the appellant when the department failed to prove its case with certainty.

The tribunal explained that as the revenue could not establish illegal export of the Indian currency, the confiscation and penalty were not sustainable. The appeal was allowed and the tribunal ordered the release of Rs. 15,00,000 to the appellant.

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