Refund of interest on seized currency follows release of the money when confiscation is not sustained.

Interest actually earned by the Department on seized Indian currency, once that currency was released to the assessee, could not be retained where the seized amount was not liable to confiscation. The text states that the rectification application was based on the omission to deal with the refund claim for interest, and that the cited decisions treated the Department as unable to keep the earnings generated while the money remained with the bank. The operative result was that any interest actually earned was directed to be refunded to the appellant together with the seized currency.

---

---

Issues: Whether the interest actually earned by the Department on seized Indian currency, later released to the assessee, was required to be refunded along with the currency.

Analysis: The application sought rectification of the earlier order on the ground that the claim for refund of interest had not been dealt with. The seized currency had ultimately been released to the appellants, and the cited decisions proceeded on the basis that once the seized amount was not liable to confiscation, the Department could not retain the interest earned on that amount while it remained with the bank.

Conclusion: The interest actually earned by the Department, if any, was directed to be refunded to the appellant along with the seized Indian currency.

---