ASADULLAH KHAN Vs. COMMISSIONER OF CUSTOMS, HYDERABAD

JUDGEMENT

(1.) CHALLENGE in this appeal is against the order passed by the Commissioner (Appeals) dated 5 -12 -2000 affirming the order passed by the Deputy Commissioner confiscating foreign currency equivalent to Rs. 5,34,520/ - recovered from the appellant on 7 -12 -98. The Commissioner (Appeals) reduced the quantum of penalty from Rs. 1,50,000/ - to Rs. 75,000/ -.

(2.) ON the basis of specific intelligence that the appellant was attempting to smuggle out foreign currency he was intercepted by the DRI officers on 7 -12 -98 at Hyderabad Airport while he was about to board the flight to Riyadh. He was accompanied by his family consisting of five members. On examination of his baggage three envelopes containing foreign currency equivalent to Indian Rs. 5,34,520/ - was found including 22,610 Saudi Riyals, UAE Dirhams, Qatari Riyals, Saudi Riyals and US Dollars. The foreign currency was seized under a panchnama made on 7 -12 -98. Statements were given by the appellant on 7 -12 -98 as well as on 9 -12 -98. On two of the envelopes containing foreign currency recovered from the appellant the name Muthalib Bhata and a telephone number were seen written. In the statement of the appellant it was mentioned that he had received this envelope from an unknown person to be handed over to Muthaib Bhata. The appellant represented for adjudication of the case without issuing a show cause notice. He had also given in writing that the adjudication can be completed without a personal hearing.

(3.) THE appellant had subsequently retracted his statement given to DRI. He contended that he along with the family members had brought currency worth 20,000 Saudi Riyals when they came to India on 7 -11 -98. According to him, it was the above foreign currency which he was taking back on 7 -12 -98. According to him, he did not declare the foreign currency on 7 -12 -98 since it was brought by him to India on 7 -11 -98 and he was under the impression that there is no obligation to declare the foreign currency under such circumstances. The adjudicating authority did not accept the explanation offered by the appellant. It was held that the appellant was guilty of non -declaration of the currency at the time of his departure 7 -12 -98 thus rendering the foreign currency liable to confiscation under Section 113(d). He was also held liable to penalty under Section 114 of the Act. 3. The Commissioner (Appeals) considered the contentions raised before him in detail and came to a conclusion that the appellant had attempted to export the foreign currency unauthorisedly outside India in contravention of the provisions of Section 11 of the Customs Act, 1962 read with Sections 13 and 67 of Foreign Exchange Regulation Act. The foreign currency was held liable to confiscation under Section 113(d) of the Customs Act, 1962 and the appellant liable to penal action under Section 114. He reduced the penalty from Rs. 1,50,000/ - to Rs. 75,000/ -.