Lawful acquisition of foreign exchange and retracted confessions defeated absolute confiscation, with redemption allowed and penalties remitted.

Documentary evidence of lawful acquisition abroad, including an undisputed money-changer certificate, displaced the basis for absolute confiscation of seized foreign exchange where the confiscation order rested only on retracted confessional statements. Foreign exchange was not treated as prohibited goods on these facts, so absolute confiscation was set aside in part, redemption was allowed on payment of fine, and the penalties were fully remitted.

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Issues: Whether the absolute confiscation of foreign exchange seized from the appellants and the penalties imposed on them were sustainable in view of the documentary evidence showing lawful acquisition abroad and the retracted confessional statements.

Analysis: The certificate issued by the money changers was not disputed. The order of confiscation rested exclusively on the confessional statements, though those statements had been retracted. Documentary evidence of lawful acquisition of the foreign exchange was available and was treated as sufficient to displace the basis for absolute confiscation. Foreign exchange, in the circumstances, was not treated as prohibited goods warranting absolute confiscation.

Conclusion: The absolute confiscation was set aside in part, redemption was permitted on payment of fine, and the penalties were fully remitted.

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