Confiscation of currency under Customs law fails without proof that it was sale proceeds of smuggled goods.

Confiscation of Indian currency as alleged sale proceeds of smuggled goods under section 121 of the Customs Act required proof that the underlying gold was smuggled and that the currency represented its sale proceeds. The presence of newspapers suggesting use for wrapping gold was insufficient by itself. In the absence of adequate evidence establishing both statutory conditions, confiscation could not be sustained and the currency was directed to be released.

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Issues: Whether the confiscation of Indian currency could be sustained as sale proceeds of smuggled goods under section 121 of the Customs Act.

Analysis: The Board held that even if the newspapers recovered with the currency suggested use for wrapping gold, it still had to be shown that the gold was smuggled and that the currency represented the sale proceeds of such gold. In the absence of sufficient evidence to establish these facts, the statutory conditions for confiscation were not met.

Conclusion: The confiscation was not sustainable under section 121 of the Customs Act and the currency was directed to be released.

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