1992 (1) TMI 207 - AT - Customs

Tribunal Upholds Seizure of Contraband Goods & Currency

MT CHAUHAN Versus COLLECTOR OF CENTRAL EXCISE & CUSTOMS

The Tribunal upheld the seizure and confiscation of foreign marked gold biscuits and Indian currency from appellant M.T. Chauhan under the Customs Act, ... Seizure of sale proceeds of smuggled goods Issues:- Seizure and confiscation of foreign marked gold biscuits- Confiscation of Indian currency under Customs Act, 1962- Penalty imposed on appellant M.T. Chauhan under Customs Act, 1962 and Gold (Control) Act, 1968- Reasonable belief for seizure of currency- Nexus between contraband goods and seized currency- Voluntariness of inculpatory statements- Retraction of statement by appellant- Exoneration of third party- Confiscation of currency as sale proceeds- Penalty under Gold (Control) Act, 1968- Relief for appellant HirachandAnalysis:The judgment concerns the confiscation of foreign marked gold biscuits and Indian currency from appellant M.T. Chauhan, along with the imposition of penalties under the Customs Act, 1962, and the Gold (Control) Act, 1968. The case originated from the interception of Chauhan by DRI and Central Excise officers, leading to the seizure of gold biscuits and currency. Chauhan admitted possession of the gold biscuits and stated that the currency was from selling contraband gold. The appellant's counsel argued against the seizure of currency, citing lack of reasonable belief and delayed statement recording. However, the authorities justified the seizure based on the nexus between the contraband goods and the currency.The Tribunal found the seizure of gold biscuits and currency valid, emphasizing the circumstances leading to the seizure and the voluntary nature of Chauhan's inculpatory statement. The belated retraction of the statement was dismissed, and the exoneration of a third party did not absolve Chauhan of guilt. The Tribunal upheld the penalties imposed on Chauhan under both Acts, considering the evidence linking the currency to the contraband gold. The confiscation of the currency as sale proceeds was confirmed under Section 121 of the Customs Act, 1962.Regarding the penalty under the Gold (Control) Act, 1968, the Tribunal reduced it to Rs. 10,000 due to the repeal of the Act and Chauhan's circumstances as a COFEPOSA detenu. Appellant Hirachand, not subject to any penalty, had his appeal dismissed for lack of specific relief sought. The judgment ultimately dismissed the appeals against the impugned order, affirming the confiscation of the currency and penalties imposed on Chauhan.