Appellant's Currency Export Attempt Penalized, Co-Appellant Cleared

The tribunal concluded that the appellant's actions constituted an attempt to export Indian currency under Section 113(d) of the Customs Act, 1962. The penalty imposed on the appellant was reduced from Rs. 45.00 lakhs to Rs. 5.00 lakhs due to mitigating circumstances. However, the penalty on the co-appellant was set aside as she was not directly involved in the offense. The distinction between 'preparation' and 'attempt' to export currency was clarified, with the tribunal determining that the appellant's actions amounted to an attempt. The appeal by the appellants resulted in the reduction of penalties and setting aside of one penalty.

---

---

Issues Involved:
1. Confiscation of Indian currency under Section 113(d) and (e) of the Customs Act, 1962.
2. Imposition of penalties under Section 114 of the Customs Act, 1962 on the appellants.
3. Distinction between 'preparation' and 'attempt' to export Indian currency.
4. Justification of penalty on Smt. Renuka Vasant Khakkar.

Issue-wise Detailed Analysis:

1. Confiscation of Indian Currency under Section 113(d) and (e) of the Customs Act, 1962:
The appellant, Shri Vasant Kumar Khakkar, was found with Rs. 22,50,000/- in Indian currency at Nagpur International Airport, intending to travel to Sharjah. The currency was detected during baggage screening by CISF personnel and subsequently seized by Customs authorities. The Customs Act, 1962, under Section 113(d), provides for the confiscation of goods attempted to be exported or brought within the limits of any customs area for the purpose of being exported, contrary to any prohibition. The tribunal concluded that the appellant's actions constituted an attempt to export the currency, as he had already brought it to the airport, a customs-notified area, with the intention to take it to Sharjah. However, the tribunal found that Section 113(e), which pertains to goods found concealed in a package, was not applicable since the currency was not concealed but kept in pouches within the baggage.

2. Imposition of Penalties under Section 114 of the Customs Act, 1962 on the Appellants:
The tribunal examined whether the penalties imposed on the appellants were justified. The penalty on Shri Vasant Kumar Khakkar was initially Rs. 45.00 lakhs. The tribunal found sufficient evidence to conclude that he had contravened the provisions of the Customs Act, 1962, and was aware of the legal limitations on carrying Indian currency abroad. However, considering the circumstances, the tribunal deemed the penalty excessive and reduced it to Rs. 5.00 lakhs. For Smt. Renuka Vasant Khakkar, the tribunal found no justification for the penalty, as she was not involved in obtaining permission or carrying the currency without necessary approvals. Consequently, the penalty on her was set aside.

3. Distinction Between 'Preparation' and 'Attempt' to Export Indian Currency:
The tribunal addressed the argument that the appellant's actions constituted mere preparation, not an attempt to export the currency. Citing the Supreme Court's definition in the case of State of Maharashtra Vs Mohd. Yakub & Others, the tribunal clarified that an 'attempt' involves deliberate overt steps towards committing an offence, beyond mere preparation. In this case, the appellant had completed the preparation stage and had taken significant steps towards exporting the currency, including bringing it to the airport and preparing to board a flight to Sharjah. Thus, the tribunal concluded that the appellant's actions amounted to an attempt to export the currency.

4. Justification of Penalty on Smt. Renuka Vasant Khakkar:
The tribunal found no evidence to support the penalty imposed on Smt. Renuka Vasant Khakkar. Although she was aware that her husband was carrying the currency, she was not involved in obtaining the necessary permissions or in the act of carrying the currency. The tribunal referred to previous judgments, including B. Chellapan Vs CCE, Tiruchirapalli, and R.P. Narayana Vs CC, Madras, to support the conclusion that mere knowledge of the act does not justify a penalty under Section 114 of the Customs Act, 1962. Consequently, the penalty on Smt. Renuka Vasant Khakkar was set aside.

Conclusion:
The tribunal modified the impugned order, reducing the penalty on Shri Vasant Kumar Khakkar to Rs. 5.00 lakhs and setting aside the penalty on Smt. Renuka Vasant Khakkar. The appeal by Shri Vasant Kumar Khakkar was partly allowed, and the appeal by Smt. Renuka Vasant Khakkar was fully allowed.

---