Undeclared baggage goods, currency thresholds, and notice requirements shaped confiscation and penalty outcomes in customs enforcement.

Undeclared gold biscuits carried through the Green Channel were held liable to confiscation, but absolute confiscation was moderated to redeemable confiscation with fine and customs duty because the goods were otherwise permissible for import and the policy justified a less severe consequence. The penalty was maintained. Foreign currency of US $6,250 was not liable to confiscation because the amount was below the declaration threshold and no legal basis for seizure existed. Indian currency of Rs. 28,500 was also not liable to confiscation because the show-cause notice did not specifically charge that currency, so confiscation could not stand.

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Issues: (i) whether the absolute confiscation of the gold biscuits and the penalty imposed on the appellant were sustainable; (ii) whether the foreign currency of US $ 6,250 was liable to confiscation; and (iii) whether the Indian currency of Rs. 28,500/- was liable to confiscation.

Issue (i): whether the absolute confiscation of the gold biscuits and the penalty imposed on the appellant were sustainable.

Analysis: The appellant had used the Green Channel without declaring the gold biscuits and had failed to produce any valid document showing lawful acquisition or import. The finding that the retraction of the statement was an afterthought was accepted. At the same time, the gold was otherwise permissible to be imported by an NRI and the liberalised gold policy supported a less stringent consequence than absolute confiscation.

Conclusion: The absolute confiscation of the gold biscuits was set aside and replaced by confiscation with an option to redeem the goods on payment of fine and customs duty. The penalty was upheld.

Issue (ii): whether the foreign currency of US $ 6,250 was liable to confiscation.

Analysis: Currency upto US $ 10,000 did not require declaration, and the amount found with the appellant was below that limit. No legal basis for confiscation was therefore made out.

Conclusion: The confiscation of the foreign currency was set aside and release was directed.

Issue (iii): whether the Indian currency of Rs. 28,500/- was liable to confiscation.

Analysis: The show-cause notice did not invoke Section 13(1) of the Foreign Exchange Regulation Act, 1973, and no specific charge was made regarding the Indian currency. In the absence of such a charge, confiscation could not stand.

Conclusion: The confiscation of the Indian currency was set aside and release was directed.

Final Conclusion: The order was modified by converting the confiscation of gold biscuits into redeemable confiscation with fine and duty, while the confiscation of the foreign currency and Indian currency was annulled and the penalty remained undisturbed.

Ratio Decidendi: Where baggage goods are intentionally brought through the Green Channel without declaration, confiscation under the customs law is justified, but absolute confiscation may be moderated in light of the applicable import policy; currency below the declaration threshold and property not covered by the show-cause charge cannot be confiscated.

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