Tribunal Upholds Penalty for Currency Smuggling, Applicant to Pay Rs. 21 Lakhs

The tribunal dismissed the application for waiver of the penalty amount of Rs. 21 lakhs imposed on the applicant for attempting to carry foreign currencies concealed in capsules and a trouser pocket while boarding a flight to Muscat. Despite the applicant's claim of financial hardship, the tribunal found the evidence supporting this claim questionable, considering the frequent foreign travels disclosed in the passport. The tribunal emphasized that the penalty imposition was based on substantial evidence and directed the applicant to deposit the entire sum within 12 weeks from the judgment date. Compliance was required by a specified date.

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Issues:
1. Waiver of penalty amount sought by the applicant to enable appeal argument on merits.

Analysis:
The judgment revolves around the applicant seeking a waiver of a penalty amount of Rs. 21 lakhs to facilitate the argument of the appeal on its merits. The applicant was intercepted while attempting to board a flight to Muscat, resulting in the discovery of foreign currencies concealed in capsules and in the trouser pocket. Subsequently, an order of confiscation was passed, and a penalty of Rs. 21 lakhs was imposed. The applicant, through the learned Advocate, contended that there was no prohibition on carrying foreign currency abroad and highlighted financial hardship as a reason for seeking a waiver. However, the tribunal found the applicant's claim of having no income and inability to pay the penalty amount questionable, considering the frequent foreign travels disclosed in the passport and lack of tangible evidence supporting the financial hardship claim.

The tribunal emphasized that the mere fact that the foreign currency seized was in the possession of the respondent did not suffice to protect the revenue's interest, as the currency was no longer the applicant's property. It was noted that the findings leading to the penalty imposition were based on substantial evidence, and the claim of financial hardship lacked credibility. Therefore, the tribunal dismissed the application for waiver of the penalty amount, directing the applicant to deposit the entire sum within 12 weeks from the judgment date. Compliance was to be reported by a specified date, and the application was disposed of accordingly.

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