Export restriction on Indian currency: absolute confiscation moderated to redemption on fine, with personal penalty set aside.

Contravention of restrictions on export of Indian currency was found, but the surrounding circumstances and the appellant's claimed bona fide belief justified a lenient approach. Absolute confiscation of the currency was not maintained; redemption was permitted on payment of fine. The personal penalty was also set aside because the mitigating factors and lack of awareness of the procedure made further penal action unnecessary. The operative result was modification of the confiscation order to allow release of the currency on redemption fine alone, without any personal penalty.

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Issues: (i) Whether the absolute confiscation of Indian currency of Rs. 2 lakhs was sustainable or the currency was liable to redemption on fine; (ii) Whether the personal penalty imposed on the appellant was sustainable.

Issue (i): Whether the absolute confiscation of Indian currency of Rs. 2 lakhs was sustainable or the currency was liable to redemption on fine.

Analysis: The currency was found to have been attempted to be exported in contravention of the prohibition against export of Indian currency notes and coins without RBI permission. At the same time, the appellant was an executive of a foreign exchange earning concern and claimed to have acted under a bona fide impression regarding the permissible foreign travel entitlement. The circumstances were taken as sufficient to extend benefit of doubt and to adopt a lenient view.

Conclusion: Absolute confiscation was not sustained. Redemption of the currency was allowed on payment of fine of Rs. 25,000/-, against the appellant.

Issue (ii): Whether the personal penalty imposed on the appellant was sustainable.

Analysis: Although contravention was found, the appellant's lack of awareness of the procedure and the surrounding circumstances were treated as mitigating factors. In view of the lenient approach adopted for the currency, the personal penalty was not considered necessary.

Conclusion: The personal penalty was set aside in favour of the appellant.

Final Conclusion: The order was modified by permitting redemption of the confiscated currency on fine, while deleting the personal penalty, leaving the appellant liable only to the redemption fine.

Ratio Decidendi: Where contravention of export restrictions is established but the surrounding circumstances justify a bona fide and mitigating view, absolute confiscation and personal penalty may be moderated by permitting redemption of the goods or currency on payment of fine.

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