Revisional authority's order modified; Rs. 5 lakh fine imposed under Customs Act, 1962; refund directed to Union of India.

The Court modified the revisional authority's order under the Customs Act, 1962, imposing an additional redemption fine of Rs. 5 lakhs on the remaining balance of confiscated foreign currency, in addition to existing fines and penalties. The Court directed the refund of the balance to the Union of India within four weeks, bringing an end to the legal proceedings without any costs awarded.

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Issues:
Challenge to order of revisional authority under Customs Act, 1962 regarding foreign currency seizure and confiscation.

Analysis:
1. The petition was filed by the Union of India through the Commissioner of Customs to challenge an order of the revisional authority under Section 129DD of the Customs Act, 1962, related to the seizure of foreign currency valued at Rs. 47.29 lakhs from the First Respondent at a point of departure to Dubai.

2. The Appellate Authority upheld the confiscation of the currency but allowed the First Respondent to exchange Indian currency equivalent to Rs. 20 lakhs from the confiscated amount and reduced the fine. The revisional authority's order released a portion of the currency and imposed a fine, leading to a refund by the Revenue.

3. A Writ Petition was filed challenging the revisional authority's order, which was set aside by a Division Bench, remanding the proceedings for reconsideration of releasing the entire foreign currencies on payment of redemption fine. The revisional authority then imposed a redemption fine of Rs. 5.50 lakhs on the remaining balance of the confiscated foreign currency.

4. Two petitions were filed before the Court: one by the Union of India to challenge the revisional authority's order and the other by the assessee seeking enforcement of the revisional authority's order dated 29 October 2010.

5. The main contention was whether the revisional authority erred in not imposing a redemption fine on the remaining amount of Rs. 20 lakhs of the confiscated currency. The Court found merit in the Revenue's argument that the entire foreign currency should be subject to redemption fine, not just a part of it.

6. To ensure finality to the proceedings, the Court decided to impose a suitable redemption fine of 25% on the balance of the foreign currency equivalent to Rs. 20 lakhs, similar to the fine imposed by the revisional authority on the rest of the confiscated amount.

7. The order of the revisional authority was modified to include an additional redemption fine of Rs. 5 lakhs on the balance of the foreign currency, in addition to the fines and penalties already imposed. The Court directed the refund of the balance to the Petitioner within four weeks.

8. Both petitions were disposed of with no order as to costs, bringing an end to the legal proceedings regarding the challenge to the revisional authority's order under the Customs Act, 1962.

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