Tribunal Modifies Order: Allows Limited Currency Redemption, Confiscates Excess; Upholds Fine for Smuggling Attempt.

The Tribunal modified the order by allowing redemption of foreign currency up to US$ 5,000 on payment of the fine, while the remaining currency was ordered for absolute confiscation. The vehicle used for transportation was allowed redemption on payment of a fine. The penalty of Rs.30,000 imposed on the appellant for smuggling foreign currencies remained unchanged. The Tribunal's decision was based on the importation limits set by FEMA and RBI Circulars, which permit importation without declaration up to US$ 5,000 or its equivalent.

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Issues Involved:
1. Confiscation of foreign currency imported from Nepal.
2. Confiscation of the vehicle used in the transportation of foreign currency.
3. Imposition of penalty on the appellant.
4. Redemption of confiscated foreign currency.

Summary:

1. Confiscation of Foreign Currency:
The appellant was intercepted near the India-Nepal border and found in possession of foreign currencies (5825 Yuan, 10,600 US Dollar, 3495 Dirham, 2100 Euro) which were seized by the authorities. The appellant admitted to importing these currencies from Nepal without proper documentation. The Additional Commissioner Customs held that the seized foreign currencies, valued at Rs.10,38,380/-, were liable for confiscation under section 111 of the Customs Act, 1962, but allowed redemption on payment of a fine. The Commissioner (Appeals) overturned this decision, ordering absolute confiscation as per Notification No.9/96-Cus(NT) which prohibits import of third country goods from Nepal.

2. Confiscation of Vehicle:
The vehicle used for transporting the seized currency, a TVS motorcycle, was also confiscated under Section 115 of the Customs Act, 1962. The Additional Commissioner Customs allowed redemption of the vehicle on payment of a fine of Rs.3,000/-.

3. Imposition of Penalty:
A penalty of Rs.30,000/- was imposed on the appellant under Section 112 (b) of the Customs Act, 1962 for smuggling the foreign currencies from Nepal into India.

4. Redemption of Confiscated Foreign Currency:
The appellant's grievance was against the absolute confiscation order by the Commissioner (Appeals), arguing for redemption on payment of a fine. The Tribunal noted that the importation of foreign currency is governed by FEMA and RBI Circulars, which allow importation up to US$ 5,000 or its equivalent without declaration. The Tribunal held that currency beyond this limit, imported without declaration, is liable for absolute confiscation. Thus, foreign currency up to US$ 5,000 was allowed for redemption against the already paid fine of Rs.1.5 lakhs, while the remaining currency was ordered to be absolutely confiscated.

Conclusion:
The Tribunal partially modified the impugned order, allowing redemption of foreign currency up to US$ 5,000 on payment of the fine and ordering absolute confiscation of the remaining currency. The penalty imposed on the appellant remained unchanged.

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