A person who is going abroad can carry USD 25000 with him, therefore, redemption fine and penalties are to be considered separately for each of appellants
ON 17/12/2007, R. N. Mewawala, A.R.Sura & S.M. Katiyar were about to board flight for Bangkok but they were intercepted by the Customs officers and it was found that they were carrying three hand bags which were tagged with the boarding pass of S. M. Katiyar. All the bags were called for examination and it was found that the bags identified by the respective passengers were carrying Indian and foreign currencies. Therefore, all the passengers were detained for examination and investigation took place. On investigation, it was found that the bag claimed by R. N. Mewawala contained USD 1,05,800, Indian Currency of Rs.2,12,000/- and Thai Baht 1,39,070, the bag owned by A.RSura contained USD 40,000 and British Pounds 520. The bag owned by S.M. Katiyar contained USD 1100 and Indian Currency of Rs.18,000/-. Therefore, a case was made against all the appellants that they were engaged in the activity of smuggling of Indian currency as well as foreign currency, which were totally valued at Rs.60,87,157/-.
Adjudication proceedings culminated in confiscation of the currencies. A redemption fine was imposed of Rs.40 lakhs and following penalties were imposed on the three persons of Rs.15,00,000/-, Rs.4,00,000/- and Rs. 10,000/- respectively.
Before the CESTAT, the appellants submitted that they are only contesting the quantum of redemption fine and penalties imposed and not the issue of illicit smuggling of the currencies. Reliance is placed on the decision in Sh. Savier Poonolly vs. CC, Chennai (2005-TIOL-515-CESTAT-MUM).
The Bench held -
"5. After considering the submissions of both sides, we find that it is not disputed by the adjudicating authority that a person who is going abroad can carry USD 25000 with him. Therefore, the contention of the ld. Counsel is acceptable that redemption fine and penalties are on higher side as held by the tribunal in the case of Savier Poonolly (supra). Therefore, we are of the opinion that redemption fine and penalties are to be considered separately for each of the appellants. As Shri Rajesh Narendra Mewawalla was carrying USD 105,800 and Thai Bhatt 139,070 therefore, considering the quantum, we impose redemption fine of Rs.6 lakhs (Rupees Six lakhs) and reduced penalty to Rs. 3 lakhs (Rupees Three lakhs) on Shri Rajesh N. Mewawalla under sec. 114(i) of the Customs Act, 1962. With regard to Shri Arun Ramlal Sura who was carrying Us $40,000/- and British Pounds 520 therefore, redemption fine of Rs.1,00,000/- (Rupees One lakh) is imposed and penalty is reduced to Rs.50,000/-.
6. With regard to Shri Shashikant Munshilal Katiyar, we find that he was carrying USD 1100 which is within the permissible limit, therefore, no redemption fine is imposed on him and penalty is also dropped."
The appeals were disposed of in above terms.