Customs authorities must release remaining foreign currency after deducting fine and penalty from seized amount under Section 125

Delhi HC directed customs authorities to release remaining foreign currency to petitioner after deducting redemption fine and penalty from seized amount. Court held that under Section 125 of Customs Act, when currency is already with department and adjudication order clearly directs realization of fine from seized amount, no separate option period is required for payment. Respondent ordered to release balance amount of Rs. 7,87,950/- within two weeks after adjusting Rs. 5,20,000/- towards fine and penalty from total seized amount of Rs. 13,07,950/-.

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Issues:
The judgment involves the execution of an Adjudication Order-in-Original regarding the redemption of seized foreign currency, the validity of the redemption offer period, and the petitioner's request for release of the currency.

Execution of Adjudication Order:
The petitioner, a foreign national, was intercepted at the airport with USD 18500 in her possession, leading to the seizure of the currency under Section 110 of the Customs Act. The Adjudication Order-in-Original allowed the redemption of the currency on payment of a fine and imposed a penalty under Sections 125 and 114 of the Customs Act, respectively. The petitioner requested redemption after deducting the penalty, but the respondent did not act, prompting the Writ Petition.

Validity of Redemption Offer Period:
The petitioner argued that due to the Covid-19 pandemic and subsequent lockdown, she was unable to redeem the currency within the stipulated three-month period. The respondent contended that the redemption offer was valid only for three months from the date of the order, and the statutory limit had expired, justifying dismissal of the writ petition.

Petitioner's Request for Release:
The judgment emphasized Section 125 of the Customs Act, which grants discretion to levy fines in lieu of confiscation, with a 120-day period for payment. The Adjudicating Officer's order for redemption and penalty was not challenged. The judgment clarified that since the currency was already with the respondent and the redemption fine and penalty were to be deducted from the total amount, the petitioner had effectively exercised the redemption option. Therefore, the respondent was directed to release the remaining amount to the petitioner within two weeks.

This judgment resolves the issues surrounding the execution of the Adjudication Order, the validity of the redemption offer period, and the petitioner's request for release of the seized foreign currency, ensuring compliance with the provisions of the Customs Act.

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