Tribunal overturns Customs Act penalty due to lack of appellant's involvement.

The tribunal set aside the penalty imposed under Section 114 of the Customs Act against the appellant. Despite the recovery of foreign currency from her baggage, it was established that she had no knowledge or connection to the items placed by another individual, Iqbal Qureshi. The tribunal found the appellant's account credible, emphasizing her lack of involvement and the admissions made by Iqbal Qureshi regarding ownership and placement of the items. Considering her age and limited literacy, the tribunal concluded that Section 114 could not be applied to her, allowing her appeal with appropriate relief.

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Issues:
Challenge to the validity of penalty under Section 114 of the Customs Act based on recovery of foreign currency in baggage.

Analysis:
The appellant contested the penalty imposed under Section 114 of the Customs Act, arguing that there was no concrete evidence linking her to the recovery of foreign currency found in a water bottle and lunch box in her baggage. It was highlighted that the items belonged to another individual, Iqbal Qureshi, who admitted to owning them and placing them in the appellant's baggage. The appellant claimed ignorance about the contents of the items, as confirmed by her statement and the panchnama attested by witnesses. The appellant disclosed that she met Iqbal Qureshi on a train journey and he later placed the water bottle and lunch box in her baggage without her knowledge. These facts were undisputed, even by Iqbal Qureshi, who acknowledged his ownership and placement of the items in the appellant's baggage. The tribunal noted the lack of evidence indicating any relationship between the appellant and Iqbal Qureshi, ultimately concluding that Section 114 of the Customs Act could not be applied to the appellant. The tribunal emphasized the appellant's age and limited literacy in considering the circumstances of the case.

The learned JDR supported the impugned order, arguing that the appellant should have prevented Iqbal Qureshi from placing the items in her baggage, leading to the imposition of the penalty under Section 114 of the Customs Act. However, the tribunal, after hearing both sides and examining the records, found that the recovery of foreign currency from the water bottle and lunch box did not implicate the appellant. The tribunal underscored the admissions made by Iqbal Qureshi regarding ownership and placement of the items in the appellant's baggage, absolving the appellant of any involvement in the incident. It was established that the appellant lacked knowledge about the contents of the items and was not linked to Iqbal Qureshi in any meaningful way. The tribunal deemed the appellant's version of events credible, especially considering Iqbal Qureshi's acknowledgment and admission of responsibility for the items. Consequently, the tribunal set aside the impugned order against the appellant, allowing her appeal with any consequential relief as permissible under the law.

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