₹9.5 Lakh Hidden In Motorcycle: Kolkata CESTAT Sets Aside Confiscation And Penalty, Finding No Evidence Of Attempted Cross-Border Export

BSF intercepted a motorcycle in Sonamura town and recovered ₹9,50,000 concealed in it.

The BSF report recorded neither an attempt to cross the international border nor a planned delivery of the currency across it.

Customs authorities confiscated the currency and motorcycle and imposed a penalty, treating the currency as intended for illegal export.

The appellant challenged that order before the Tribunal.

He stated in his recorded statement that the cash had a source and explained its concealment.

Section 113(b) of the Customs Act concerns goods brought to a place in India for the purpose of being exported contrary to a prohibition or restriction; the judgment treated proof of an attempt or conduct toward export as necessary to sustain confiscation on that basis.

The Tribunal also relied on Samir Saha v. CCP, Shillong, which held that Section 123’s reversed burden does not apply to Indian currency unless the statutory requirements are met, and that the Revenue must support confiscation of currency with cogent material.

It followed Sudarsan Jana v. Commissioner of Customs (P), Kolkata and Manir Hossain v. CCP, Shillong, which set aside confiscation and penalties where evidence did not establish that Indian currency was intended to be exported.

The BSF report described recovery of concealed currency within Sonamura town but did not identify a border-crossing attempt, a destination, or a person due to receive the cash across the border.

The Tribunal considered the allegation that the currency was “meant to be smuggled” too general to establish attempted export.

Concealment and the appellant’s alleged flight raised suspicion but did not supply the missing evidence; his statement also gave an account of the currency’s source and concealment.

With no evidence of a recipient across the border or other conduct toward export, the Tribunal held that the Revenue had not established the basis for confiscation.

It set aside the confiscation of the currency and motorcycle, as well as the penalty, allowed the appeal, and granted consequential relief, if any, according to law.