COMMISSIONER OF CUSTOMS Vs. RAJINDER NIRULA

JUDGEMENT

(1.) This appeal of the Revenue was listed for directions. With the consent of the Revenue's counsel, we have taken it for final hearing. On the last occasion and today, we have heard the counsel at some length and with her assistance, we have perused the appeal, including the impugned order.

(2.) The appeal was admitted on the three substantial questions of law, which have been framed on 14th June, 2007.

(3.) The Revenue approached this court aggrieved and dissatisfied with the fact that the two respondents were apprehended by the officials of the Revenue intelligence on 1st August, 2002 at Chatrapati Shivaji International Airport, Mumbai. One of them was to travel by Air India flight from Mumbai to Ahmedabad as a domestic passenger in the international flight, whereas, the other was in transit in the midst of his journey from Bangkok to Dubai via Mumbai. An amount of US $ 70,000 (Rs. 35 lakh in Indian currency) and four mobile phones valued at Rs. 20,000/- were seized from them. A show cause notice was issued inter alia alleging that foreign currency was being attempted to be exported out of India in contravention of the provisions of Sections 5 and 7 of the Foreign Exchange Management Act, 1999 read with Section 11(1) of the Customs Act, 1962. That was liable for confiscation under the provisions of Section 113(d), (e) and (h) of the Customs Act, 1962. The order-in-original directed confiscation of this currency without any option for redemption and also imposed penalty of Rs. 3,00,000/- each on these two persons. Being aggrieved and dissatisfied, they filed an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) and which has been allowed by the impugned order.