Whether assessee is entitled to get interest on seized amount of Indian Currency?

PJ/CASE LAW/2014-15/2541

Case:-JYOTI AGARWAL Vs COMMISSIONER OF CUS., CALCUTTA

Citation:-2001 (137) E.L.T. 618 (TRI. - KOLKATA)

Brief Facts:- In this miscellaneous application the applicant seeks rectification of mistake in the Order No. A-1935-Cal/2000, dated 27-11-2000 [2001 (137) E.L.T. 532 (T)] of this Bench of the Tribunal.

Appellant contentions:- Shri Jyoti Agarwal, arguing himself, submits that in the appeal a prayer was made for a specific relief in the form of interest to be paid to him on the Indian currency of Rs. 33,500/- which was seized by the department for alleged violation of the provisions of the Foreign Trade (Development and Regulation) Act, 1992. He points out that despite the said prayer, the Tribunal’s order dated 27-11-2000 did not contain any direction in that regard. In this connection, he invites attention to the decision of the Tribunal in the case of Ram Kumar Kamal Kumar v. CCE, Calcutta - 1999 (112) E.L.T. 937 (T), in which, under similar circumstances, interest was allowed on the seized amount and the MA (ROM) filed in that case was allowed by way of inserting an additional paragraph to the Tribunal’s earlier order dated 27-11-1998. He, therefore, prays that similar relief may also be extended to him by allowing the present Miscellaneous Application.

Respondent Contentions:- Shri V.K. Chaturvedi, ld. SDR appearing for the Revenue submits that normally the Customs department does not keep the seized Indian currency in the Bank so as to earn interest. However, in this particular case he is not aware whether the seized currency has earned any interest.

Reasoning of Judgment:- Tribunal carefully considered the pleas advanced from both the sides. It has been observed in the Tribunal’s order dated 27-11-2000 that there is no evidence to show that the applicant had carried the said Indian currency from Nepal and the appellant’s explanation that he exchanged the said notes with his friend at Naxaulbari was held reasonable and acceptable. Accordingly, the impugned order was set aside with consequential relief to the appellant. The applicant’s present grievance is that his request for release of the said Indian currency with interest has not evoked any response till date from the Deputy Commissioner of Customs, Siliguri.
From the record it is not clear whether the Indian currency involved in this case has actually earned interest. However, if the department has deposited the said amount in a bank and had earned interest therefrom, the applicant is entitled for the same when the seized amount is released to him in pursuance of the aforementioned Tribunal’s order dated 27-11-2000. The case law cited by him supports this view. Accordingly, one more paragraph was added in the Order No. A-1935/Cal/2000, dated 27-11-2000 [2001 (137) E.L.T. 532 (T)], as under :-

In view of the case law relied upon by the applicant, Tribunal directs that the amount of interest actually earned by the department, if any, shall be refunded to the applicant along with the Indian currency in question.

The miscellaneous application is allowed in above terms.

Decision:- Miscellaneous ROM allowed.

Comment:- The crux of the case is that if the customs department has deposited the seized amount of Indian Currency in a bank and has earned any interest therefrom, the assessee is entitled for the said interest when the seized amount is released to assessee.

Prepared by: Meet Jain

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PJ/CASE LAW/2014-15/2541

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