1993 (8) TMI 201 - AT - Customs

Foreign currency confiscation upheld; penalties reduced for illegal export attempt.

The Tribunal confirmed the confiscation of foreign currency and reduced the penalty on the main individual from Rs. 2,50,000 to Rs. 1.25 lakhs for ... Penalty for attempt to export foreign currency from India Issues:1. Attempted illegal export of foreign currency without declaration.2. Imposition of penalty and confiscation of foreign currency.3. Involvement of individuals in acquiring and attempting to export foreign currency.4. Application of Section 114 of the Customs Act for penalty imposition.5. Leniency plea for reducing the penalty amount.Analysis:Issue 1: Attempted illegal export of foreign currency without declarationThe case involved the interception of an individual carrying foreign currency equivalent to Indian Rs. 7,05,613 without proper declaration while attempting to board a flight to Dubai. The foreign currency was confiscated, and a penalty was imposed on the individual for the attempted illegal export.Issue 2: Imposition of penalty and confiscation of foreign currencyThe Addl. Collector imposed a penalty of Rs. 2,50,000 on the main individual involved in carrying the foreign currency, along with ordering the confiscation of the foreign currencies. Additionally, another individual was also penalized for his alleged involvement in introducing the main individual to unauthorized money exchangers.Issue 3: Involvement of individuals in acquiring and attempting to export foreign currencyOne individual was found to have acquired the foreign currency for business purposes to cover incurred losses abroad. The other individual was alleged to have assisted in acquiring the foreign currency but was not directly involved in the attempted export. The Tribunal considered the roles of both individuals in the acquisition and attempted export of the foreign currency.Issue 4: Application of Section 114 of the Customs Act for penalty impositionThe Tribunal analyzed the application of Section 114 of the Customs Act in imposing penalties on individuals involved in the case. It was argued that one of the individuals, due to his age and mental capacity, should not be held liable for the penalty under Section 114, as he was not directly involved in the export of the currency.Issue 5: Leniency plea for reducing the penalty amountThe representative of the main individual involved pleaded for leniency in reducing the penalty amount, considering the circumstances of business losses incurred abroad. The Tribunal, after considering the plea, reduced the penalty amount imposed on the main individual from Rs. 2,50,000 to Rs. 1.25 lakhs.In conclusion, the Tribunal confirmed the confiscation of foreign currency and the reduced penalty on the main individual, while setting aside the penalty imposed on the other individual due to lack of direct involvement in the attempted export. Both appeals were disposed of accordingly.