CHANDRU P JETHWANI Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule; with the consent of Counsel for the parties returnable forthwith. With the consent of Counsel and at their request the Petition is taken up for hearing and final disposal.

(2.) A search took place of the premises of the Petitioner by the officers of the SIIB Customs, Mumbai on 21 March 1997 during the course of which certain foreign currencies together with Indian currency in the amount of Rs. 5.90 lakhs were seized. A notice to show cause was issued to the Petitioner by the Assistant Director in the Enforcement Directorate. An order of adjudication was passed on 19 May 1998 by which the foreign currencies seized from the premises were confiscated and a penalty of Rs. l lakh was imposed. The adjudicating authority, however, held that there was no concrete material evidence on the record to establish that the Indian currency in the amount of Rs. 5.90 lakhs represented the proceeds of foreign currency. Consequently, the Indian currency was ordered to be released to the Petitioner after obtaining no objection of the Income Tax authorities.

(3.) The order of the adjudicating authority attained finality on 4 July 1998 upon the expiry of the period of limitation to file an appeal. The ITO (Investigation) Unit-III, Mumbai issued a no objection to the Assistant Directorate in the Enforcement Directorate for the release of an amount of Rs. 5.90 lakhs after adjustment of the penalty of Rs. 1 lakh.