Confiscation of Indian currency and penalty for alleged illegal export fail where evidence did not establish border-bound transport.

Contradictory versions in the show cause notice about the place and time of interception, together with an area map showing the alleged recovery point away from the border, meant the record did not consistently prove that the Indian currency was being carried for illegal export to Bangladesh. As the evidentiary burden to establish illicit export activity was not discharged, the absolute confiscation of the currency and the penalty imposed under Section 114 of the Customs Act, 1962 were held unsustainable and set aside.

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Issues: Whether the absolute confiscation of Indian currency and the penalty imposed under Section 114 of the Customs Act, 1962 were sustainable.

Analysis: The show cause notice contained contradictory versions regarding the place and time of interception and recovery, and the record did not consistently establish that the currency was being transported towards the border for illegal export to Bangladesh. The area map produced on record also supported the contention that the alleged place of recovery was away from the border. In these circumstances, the evidentiary burden to establish illicit export activity was not discharged and the appellant was entitled to the benefit of doubt.

Conclusion: The confiscation of the currency and the penalty under Section 114 of the Customs Act, 1962 were not sustainable and were set aside in favour of the appellant.

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