CC Vs. SHAKEEL AHMAD

JUDGEMENT

(1.) On 9.5.99, the respondent was intercepted at the Customs Barrier at Nepalganj Road on his way from Nepal to India, by officers of the Customs. 41 Indian currency notes of the denomination of Rs. 500 were recovered alongwith currency notes of lower denomination from his person and the same were seized by the officers believing that the currency notes of denomination of Rs. 500 were liable to confiscation under Section 111 (d) of the Customs Act. After recording a statement of the respondent under Section 107 of the Customs Act, the department booked a case against him and accordingly issued a show -cause notice to him for confiscating the currency notes and imposing penalty on him. The original authority ordered absolute confiscation of the seized goods worth Rs. 20,500 (Rs. 500 x 41) and imposed on the appellant a personal penalty of Rs. 500 under Section 112 of the Customs Act. The appeal preferred by the party against the order of the original authority was allowed by the Commissioner (Appeals). Hence the present appeal of the Revenue.

(2.) Examined the records and heard both sides.

(3.) Ld. Commissioner (Appeals) appears to have accepted to appellant's case that, at the Customs Barrier at which the impugned currency notes were seized, the stage for confiscation of the goods under Section 111 had not reached. The lower appellate authority, further, appears to have found it a fit case for exoneration on considerations such as (i) that the appellant was not a habitual offender (ii) that he was a small trader, and (Hi) that his declaration was voluntary and correct, and so forth. The main ground raised in this appeal of the Commissioner of Customs, at SI. No. 5 under 'Grounds of Appeal', is extracted below: