Confiscation and redemption fine fail without evidence linking seized currency to unauthorised removal of excisable goods.

Confiscation of Indian currency and seized goods could not be sustained where the proceedings against the appellants had already been dropped and the department produced no evidence linking the currency to sale proceeds of unauthorised removal of excisable goods. The burden remained on the department to prove the alleged nexus, and absent such proof the redemption fine was also unsustainable. The confiscation and fine were therefore set aside in favour of the appellants.

---

---

Issues: Whether the confiscation of Indian currency and seized goods, along with the imposition of redemption fine, could be sustained after the proceedings against the appellants had been dropped and in the absence of evidence linking the currency to unauthorised removal of excisable goods.

Analysis: The adjudicating authority had recorded that the proceedings in respect of the appellants were dropped, yet proceeded to confiscate the currency and goods and to impose redemption fine. The record contained no evidence establishing that the currency represented sale proceeds of goods removed without payment of duty. In such circumstances, the burden to prove the alleged nexus remained on the department, and the confiscation and fine could not be sustained.

Conclusion: The confiscation of the currency and goods, as well as the redemption fine, was not justified and was set aside in favour of the appellants.

---