TaxTMI 
TaxTMI 
2024 (8) TMI 215
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....ding the present appellant/appellant no. 3 therein to liable to penal action and thus upholding the penalty imposed upon the appellants. The factual matrix in brief relevant for the present purpose is as follows: 1.1 Shri Suneet Kalra and Shri Rajinder Kalra were intercepted on 30.08.2017 at exit gate of Terminal-3, IGI Airport, New Delhi when they arrived New Delhi from Dubai. They were intercepted when they had already crossed the customs green channel and were diverted for detailed examination. From their personal search was recovered yellow metal in the shape of buckle of belt, kada and chain weighing 1700 gms. The jewellery appraiser had confirmed the said metal to be gold of 995 purity to be valued at Rs.46,29,560/-. Hence, the same ....
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....from Shri Gurpreet Singh of M/s. Jyoti Money Exchange (P) Ltd. that show cause notice was served upon the present appellant along with Shri Suneet Kalra and Rajinder Kalra alleging that foreign currency equivalent to Indian Rupee (INR) Rs.4135800 has illegally been sold by the appellant on 29.08.2017 and for currency equivalent to Rs.40,84,907/- has illegally been sold on 26.08.2017 by the appellant to Shri Suneet Kalra. The said money since had already been utilized was not available for confiscation however the foreign currency equivalent of Rs.16,11,666/- which was detained vide Panchnama dated 30.08.2017 was proposed to be seized and confiscated under Section 113 of Customs Act, 1962 and penalty under Section 114, 114AA, 117 of Customs ....
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....filled fro imposition of penalty under Section 114 AA is knowledge and intention, and in the present case there is no evidence brought on record which suggests that, the appellant had knowledge or the intention to smuggle foreign currency or gold into or out of the country. 3.1 It is submitted that, the statements of the Co-Noticees duly state that, the foreign exchange was purchased by them from the appellant on payment of the consideration of Rs.17.80 per UAE Dhiram, and there is nothing in the statements which suggest that, anything extra or more was paid to the appellant for the purchase of the foreign currency; also the notice 1 and 2 have dule stated that the gold was smuggled after they heard about the quick profit in sale of gold, ....
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.... was provided by him to both of them who smuggled the same out of India to buy gold which was smuggled back into India. Both Shri Suneet Kalra and Shri Rajinder Kalra had categorically admitted to have purchased foreign currency from the appellant in cash, without legal documents. These statements have not been retracted till date. 4.1 The appellant in his voluntary statement dated 30.08.2017 tendered before Air Customs Superintendent (Preventive) u/s 108 of Customs Act accepted that no daily register regarding purchase and sale of foreign currency is maintained in his office. On scrutiny of call records it was observed that Shri Suneet Kalra and the appellant had been in touch and had communicated with each other on 26.08.02017 and therea....
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....anged INR from the present appellant who is also been alleged of conniving with Shri Suneet Kalra and Shri Rajinder kalra in the act of illegally exporting the foreign currency and illegally importing the gold solely on the basis of call records of the mobile numbers of three of them that appellant had communicated with Shri Suneet Kalra on 26th August and 27th August when Shri Suneet Kalra had departed from India. Commissioner (Appeals) has confirmed the imposition of penalty upon him on the ground of admission by Shri Suneet Kalra and Shri Rajinder Kalra to have purchased currency from the present appellant in cash without legal documents. To my understanding this only evidence against the present appellant i.e. the call records and the v....
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....dian currency with them to be exchanged into Dhirams. The Indian Currency is stated to be in cash which definitely could be a reason with both them to resist for getting an invoice. Though appellant was required by law to not to receive cash and to issue an invoice while exchanging the money but this failure on part of appellant cannot prove him to be a conspirator of act of illegal exports/imports. 5.2 I further observe that appellant premises were also search and nothing incriminating which may suggests his involvement/indulgence in any kind of illegal exports or imports. In fact, the original adjudicating authority has refrained itself from ordering confiscation of money as was detained from the appellant premises at the time of search.....