Reduction of Redemption fine & Penalty in excercise of discretionary powers

PJ/Case Laws/2011-12/1213

Case:-COMMISSIONER OF CUSTOMS v/s KIRAN SUDHIR DAS

Citation:-2011(268) E.L.T. 72 (Guj.)

Issue:- Customs Authorities have discretionary powers under Section 125 of Customs Act, 1962 to reduce the confiscation fine as well as penalty imposed under Section 112.

Brief Facts:- Respondent is a non resident of India (NRI) who was travelling from India to Dubai with his family. He was found carrying Indian currency of Rs. 1,15, 000/-. Customs Authorities found that such action was not allowable and confiscated the whole amount under Section 111 of the Customs Act, 1962 and also imposed penalty under Section 112 of the Act of Rs. 10000/-.

Respondent filed appeal before the Tribunal. The Tribunal reduced the fine in lieu of confiscation to Rs. 10000/- and also reduced the penalty to Rs. 1000/- with an observation that the appellant had declared the currency and therefore, lenient view should be taken. Reliance was also placed by the Tribunal on other decisions to suggest that even otherwise absolute confiscation was not warranted.

Against this order, Revenue is in appeal wherein the following questions of law have been raised:

1. Whether the Hon’ble CESTAT is competent to relax the statutory prohibition imposed by the Government of India regarding import of Indian currency in excess of Rs. 5000/- per person while entering into India as per Notification No. FEMA 6/RB-2000 dated 3-5-2000 of the Reserve Bank of India?

2. Whether the Hon’ble CESTAT is empowered to release goods that were confiscated being prohibited goods?

3. Whether the Hon’ble CESTAT’s order relaxing the prohibition on the prohibited goods was just and proper only on the ground that the goods were declared?

Reasoning of Judgment:- The High Court found that though power under Sections 111 and 112 of the confiscation and penalty was available under Section 125 of the Customs Act, the Authority also enjoyed discretionary power to impose fine in lieu of confiscation. The Tribunal in exercise of these powers had also ordered reduction in fine and also reduced penalty. Hence, as the Tribunal has exercised power under the said provisions, no question of law arises.

Decision:Appeal dismissed.

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PJ/Case Laws/2011-12/1213

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