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of <h1>Appeal Granted for Provisional Release of Seized Currency: Evidence and Legal Interpretation Key</h1> <h3>HITESH NAGWANI Versus COMMISSIONER OF CUSTOMS, INDORE</h3> HITESH NAGWANI Versus COMMISSIONER OF CUSTOMS, INDORE - TMI Issues:- Provisional release of seized currency- Interpretation of Customs Act provisions- Allegations of under-valuation and ownership- Legal basis for provisional release of currency- Compliance with statutory provisionsAnalysis:1. Provisional Release of Seized Currency:The appeal challenged the rejection of the request for provisional release of seized currency amounting to Rs.82,67,900/- and USD 5000. The currency was alleged to be the sale proceeds of imported goods owned by the appellant. The appellant contended that the investigation was complete, and the currency should be released provisionally. The department argued against the release, leading to the rejection of the request.2. Interpretation of Customs Act Provisions:The appellant argued that currency falls under the definition of 'goods' as per section 2(22) of the Customs Act, 1962, making it eligible for provisional release under section 110A. The Tribunal analyzed the relevant legal provisions, including CBIC Circular No. 35/2017, to determine the applicability of these provisions to the case at hand.3. Allegations of Under-Valuation and Ownership:The seized currency was linked to the under-valuation allegations concerning the imported goods owned by the appellant. The show cause notice implicated the appellant as the bona fide owner of the goods. However, the Tribunal clarified that the current adjudication was not about the truth of these allegations but focused on the provisional release of the currency.4. Legal Basis for Provisional Release of Currency:The Tribunal emphasized that the Customs Act allows for the provisional release of seized goods, including currency, pending adjudication. It cited precedents and legal provisions to support the argument that the currency could be provisionally released based on statutory provisions and guidelines.5. Compliance with Statutory Provisions:The Tribunal highlighted the importance of following statutory provisions and legal principles in deciding on the provisional release of seized currency. It underscored that the belief of the department regarding the currency being sale proceeds should not be the sole reason to deny provisional release, especially when there is no evidence to support the confiscation of the currency.In conclusion, the Tribunal set aside the order rejecting the provisional release of the currency, emphasizing that the belief of the department needed to be substantiated with evidence. The appeal was allowed based on the interpretation of relevant legal provisions and the lack of legal grounds to withhold the provisional release of the seized currency.
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