Deliberate concealment of foreign currency supports absolute confiscation, while redemption remains discretionary and penalty may be moderated.

Deliberate concealment and non-declaration of foreign currency, without lawful supporting documents, takes the goods outside bona fide baggage treatment and attracts confiscation under customs and foreign exchange law. Redemption under Section 125 of the Customs Act is discretionary, not a matter of right, especially where the concealment shows planned unlawful conduct; absolute confiscation was maintained and redemption declined. The personal penalty was upheld in principle because the contravention was established, but it was reduced as excessive on the facts and circumstances.

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Issues: (i) Whether the absolute confiscation of the concealed foreign currency was sustainable and whether redemption was available as a matter of right; (ii) whether the personal penalty imposed on the applicant required interference.

Issue (i): Whether the absolute confiscation of the concealed foreign currency was sustainable and whether redemption was available as a matter of right.

Analysis: The foreign currency was found concealed in capsules swallowed by the applicant and was not declared at the time of departure. The concealment, non-declaration and absence of lawful supporting documents brought the goods outside the scope of bona fide baggage and established contravention of the customs and foreign exchange law. The power under Section 125 of the Customs Act, 1962 was held to be discretionary and not an automatic entitlement in every case, especially where the concealment was deliberate and the conduct indicated a planned unlawful act.

Conclusion: The absolute confiscation was upheld and redemption was declined.

Issue (ii): Whether the personal penalty imposed on the applicant required interference.

Analysis: The applicant's conduct justified penal action, but the quantum of penalty was found to be excessive in the circumstances. While the contravention stood established, the penalty deserved moderation on a comparative assessment of the facts and circumstances.

Conclusion: The penalty was reduced.

Final Conclusion: The revision application succeeded only to the extent of reduction of penalty, while the confiscation of the foreign currency was maintained.

Ratio Decidendi: In cases of deliberate concealment and non-declaration of foreign currency, redemption under Section 125 of the Customs Act, 1962 is discretionary and not a matter of right, and the confiscation and penalty may be sustained notwithstanding a later claim of ownership.

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