COMMISSIONER OF CUSTOMS, Vs. HARSHAVADAN BHAGVANJI VARIA

JUDGEMENT

(1.) Appeal is against the order of the Commissioner (Appeals) setting aside the order of the Additional Commissioner, ordering confiscation under Clause (d) of Section 111 of the Act of foreign currency seized from the possession of the respondent and imposing penalty on him.

(2.) The ground in the appeal is that the foreign currency has been imported in contravention of the provisions of Section 3 of Foreign Trade (Development and Regulation) Clause (3) of Foreign Trade (Exemption from application) Order, 1993 read with Section 30 of the Customs Act, 1962.

(3.) The show cause notice alleged contravention of the provision of Section 13 of Foreign Exchange Regulations Act. This is thus a new ground, and cannot be considered. As for the contravention of the provisions of the Act, the notification issued by the Reserve Bank permits free imports of foreign exchange and foreign currency into India there being only requirement that the foreign currency brought by a passenger must be declared. It is therefore not be possible to conclude that the import of foreign exchange is prohibited by any law and therefore liable to confiscation under Clause (d) of Section 111 of the Act. Further, even otherwise it is the department's case that the respondent imported the goods. The case is that he was found in possession of currency which had been imported contrary to any prohibition. The respondent's case was that he had purchased the foreign exchange from other persons. For the department's case to sustain, it must be shown that this currency was imported by this person in contravention of the law. This has not been shown.