TaxTMI 
TaxTMI 
2023 (8) TMI 622
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....ore, the foreign currencies are liable for absolute confiscation. Thus, the Department has correctly argued that redemption of the impugned foreign currencies was not proper. In view of the above, the impugned foreign currencies are absolutely confiscated. The impugned order is modified in above manner and the appeal is allowed." 2.1 Appellant was intercepted by the officer of SSB near border Pillar No.556 (53), when he was coming from Nepal into India and was handed over to the Customs Authorities alongwith seizure and apprehension memo dated 10.03.2019. 2.2 From his possession some foreign currencies i.e. 5825 Yuan, 10,600 US Dollar, 3495 Dirham, 2100 Euro were recovered by SSB and seized as per the seizure memo dated 10.03.2019. 2.3 In his statement dated 11.03.2019 he stated that he works for Western Union firm at Shohratgarh and its proprietor is his mother. He collected the aforesaid foreign currencies from foreigners for commission. He was bringing the said currencies from Taulihawa, Nepal to exchange the same from the authorized money exchanger in India. He could not produce any document related to aforesaid foreign currencies. 2.4 In view of the above, customs ....
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....ued at Rs.30,000/- under Section 115 (2) of the Act. However, I give an option under Section 125 of the Customs Act, 1962, to redeem the said vehicle on a redemption fine of Rs.3,000/- (Rupees Three Thousand Only) under Section 125 of the Customs Act, to its lawful owner. iii. I impose penalty of Rs.30,000/- (Rupees Thirty Thousand only) upon Shri Arun Kumar S/o Sadanand R/o Chowk bazar, Post Shoharatgarh, Siddharth Nagar under Section 112 (b) of the Customs Act, 1962. " 2.7 Revenue being aggrieved by the above order filed the appeal before Commissioner (Appeals). Commissioner (Appeals) as vide the impugned order allowed the appeal filed by the Revenue against the option of redemption given to the appellant by the Original Authority and have held that seized foreign currency is liable for absolute confiscation under Section 111 (d) and confiscated the same absolutely. 2.8 Aggrieved appellant filed this appeal before the Tribunal. 3.1 I have heard Shri Shubham Agarwal learned Advocate appearing for the appellant and Shri Sarweshwar T. Khairnar Authorized Representative appearing for the Revenue. 3.2 Arguing for the appellant learned counsel submits that the appe....
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....rities in Currency Declaration Form (CDF). It shall not be necessary to make such declaration where the aggregate value of the foreign exchange in the form of currency notes, bank notes or travelers cheques brought in by such person at any one time does not exceed US$10,000 (US Dollars ten thousand) or it equivalent and/ or the aggregate value of foreign currency notes brought in by such person at any one time does not exceed US$5,000 (US Dollars five thousand) or its equivalent." On the basis of the above circular he concluded that the foreign currency seized can be allowed to be redeemed against redemption fine. Revenue being aggrieved by this finding challenged the impugned order only to the extent of allowing the currency to be redeemed against payment of redemption fine of Rs.1,50,000/-. 4.4 Commissioner (Appeals) has referred to the Notification No.9/96-Cus(NT) dated 22.01.1996 which prohibits the import of any third country goods from Nepal to India. He holds that currency being covered by the definition of goods as per section 2(22) of the Customs Act, 1962 currency also falls under the category of goods. Hence holding that as this seized foreign currency is prohibite....
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....s of persons and the limit up to which foreign currency account may be held or operated under clause (b) of section 9; (f) the limit up to which foreign exchange acquired may be exempted under clause (d) of section 9; (g) the limit up to which foreign exchange acquired may be retained under clause (e) of section 9; (ga) export, import or holding of currency or currency notes; (h) any other matter which is required to be, or may be, specified. In exercise of the powers conferred by clause (g) of sub-section (3) of Section 6, subsection (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), Reserve Bank has made Foreign Exchange Management (Export and Import of Currency) Regulations, 2015. The said regulations provide as follows: "6. Import of foreign exchange into India:- A person may - (a) send into India without limit foreign exchange in any form other than currency notes, bank notes and travellers cheques; (b) bring into India from any place outside India without limit foreign exchange (other than unissued notes), provided that bringing of foreign exchange into India un....
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....eign Currency, the reliance placed by the Commissioner (Appeal) on a general notification No.09/1996-Cus (NT) for holding the currencies to be absolutely prohibited as per this notification is not justified. The import and possession of these should have been dealt in accordance with the provisions of the above regulations read with the Circulars issued by the Reserve bank of India from time to time. It is settled law that "generalia specialibus non derogant ". In case of Santhosh Maize & Industries Ltd. [2023 SCC OnLine SC 764.], Hon'ble Supreme Court has observed: "24. Law is well settled that if in any statutory rule or statutory notification two expressions are used - one in general words and the other in special terms - under the rules of interpretation, it has to be understood that the special terms were not meant to be included in the general expression; alternatively, it can be said that where a statute contains both a general provision as well as a specific provision, the latter must prevail." 4.7 Thus I do not find any merits in the findings recorded by the Commissioner (Appeals) as the possession of foreign currency in India is governed by the pr....