Tribunal orders release of seized Indian currency, upholds ownership claim, imposes redemption fine and penalty

The tribunal ruled in favor of the appellant, directing the adjudicating authority to release the seized Indian currency upon payment of a redemption fine and penalty. The appellant's claim of ownership was upheld, leading to the decision that absolute confiscation was unjustified. The redemption fine was set at 10% of the currency seized, with an additional penalty of &8377; 2 lakhs imposed. The tribunal considered the appellant's circumstances and expenses in the case, ultimately resolving the matter in favor of the appellant.

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Issues:
1. Seizure and absolute confiscation of Indian currency smuggled outside India.
2. Imposition of penalty on the appellant.
3. Interpretation of whether Indian currency can be redeemed by imposition of redemption fine and penalty in cases of attempted export without RBI permission.

Analysis:
1. The appellant challenged the impugned order where Indian currency was seized and absolutely confiscated, with a penalty imposed. The currency of &8377; 24,17,500/- was found with the appellant at Sahar Airport, not declared for export with RBI permission. Statements were recorded, leading to the decision of absolute confiscation and penalty imposition. The appellant contested the decision, claiming the currency belonged to another individual initially but later explained the source and purpose of the currency, which was not considered by the adjudicating authority. The appellant argued for redemption of the currency instead of absolute confiscation.

2. The matter was referred to the Larger Bench to determine if attempted export of Indian currency without RBI permission warrants absolute confiscation or redemption through a fine and penalty. The Larger Bench held that in such cases, absolute confiscation is possible, but redemption is at the discretion of the proper officer based on circumstances. The case was brought before the tribunal for resolution.

3. The appellant asserted ownership of the currency, recovered from their possession, while the adjudicating authority disputed this claim. The tribunal noted the principle that possession implies ownership, and as the appellant had the currency when intercepted, likely owned it. The tribunal found the absolute confiscation unjustified, ruling in favor of releasing the currency to the appellant upon payment of a redemption fine and penalty. The redemption fine was set at 10% of the seized currency, with a penalty of &8377; 2 lakhs deemed appropriate.

4. The tribunal directed the adjudicating authority to release the currency upon payment of the redemption fine and penalty, considering the appellant's lengthy ordeal and expenses in pursuing the case. The appeal was disposed of with this decision.

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