1992 (12) TMI 119 - AT - Customs

Tribunal Confirms Currency & Gold Confiscation

The Appellate Tribunal upheld the confiscation of Indian currency and a gold biscuit under the Customs Act and the Gold (Control) Act. The appellant's ... Confiscation of currency Issues:- Appeal against the order of confiscation of Indian currency and imposition of penalties under the Customs Act and the Gold (Control) Act.- Validity of the confessional statement made by the appellant.- Claim of coercion and retraction of the statement by the appellant.- Ownership of the seized currency and explanation regarding its source.- Consideration of evidence and justification for the confiscation of currency and imposition of penalties.- Role of the appellant in the possession of contraband gold and confiscated currency.Analysis:The appeal before the Appellate Tribunal CEGAT, Madras challenged the order of the Additional Collector of Customs confiscating Indian currency of Rs. 35,000 under the Customs Act, along with penalties under various sections. The appellant's residential premises were searched, leading to the seizure of the currency and a gold biscuit. The appellant admitted that the currency was from the sale proceeds of contraband gold. The appellant contested the voluntariness and truth of the confessional statement, claiming coercion and later retracted the statement. The appellant asserted that the currency belonged to his sister, borrowed from someone, and entrusted to him for a trip to Singapore. The appellant also highlighted his previous legal issues and fines imposed by the criminal court.The Tribunal considered the evidence, including the Mahazar confirming the seizure of the currency. The Tribunal found the confessional statement voluntary and true, rejecting the belated retraction. The appellant's failure to cross-examine the recording officer weakened the coercion claim. The absence of documentary evidence or details regarding the alleged loan undermined the sister's ownership claim. Consequently, the Tribunal upheld the confiscation of the currency as proceeds of contraband gold. The gold biscuit's confiscation was unchallenged as the appellant disowned it.Regarding the penalty, the Tribunal noted the appellant's limited role in possessing the gold and currency, merely entrusted by his son-in-law. Considering the circumstances and the appellant's past legal troubles, the Tribunal reduced the penalty under the Customs Act to Rs. 1,000, refunding the excess amount to the appellant. Despite the penalty reduction, the appeal was dismissed, affirming the confiscation of the currency and the gold biscuit.