https://www.taxtmi.com/caselaws?id=120277 Section 121 of the Customs Act, 1962 permits confiscation only of the immediate sale proceeds of smuggled goods, not of consideration received from a prior lawful domestic sale. On the facts, the appellant's sale of travellers' cheques to another licensed foreign exchange dealer was lawful, and the later illegal onward movement and overseas encashment did not convert that consideration into confiscable sale proceeds. The same reasoning applied to the amount adjusted from the security deposit. As no participation in, or knowledge of, the subsequent smuggling activity was established, the penalty also failed. en-us Fri, 15 Sep 2006 00:00:00 +0530 Wed, 18 Jul 2012 12:13:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=120277 Section 121 of the Customs Act, 1962 permits confiscation only of the immediate sale proceeds of smuggled goods, not of consideration received from a prior lawful domestic sale. On the facts, the appellant's sale of travellers' cheques to another licensed foreign exchange dealer was lawful, and the later illegal onward movement and overseas encashment did not convert that consideration into confiscable sale proceeds. The same reasoning applied to the amount adjusted from the security deposit. As no participation in, or knowledge of, the subsequent smuggling activity was established, the penalty also failed. Case-Laws Customs Fri, 15 Sep 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=120277