ORDER

B.N. Kirpal, J. - The special1eave petition arises from the order dated 7th August, 1995 passed by the Bombay High Court in W.P. No. 1334 of 1995. The Customs officials at Sahar International Airport, Bombay apprehended one Sukhawani Solanki when he was attempting to export foreign exchange out of India valuing Rs. 13,27,212/-. Mr. Solanki in his statement recorded under Section 108 of the Customs Act by the Customs official, had stated that one Mr. Subhash Dudani had given him the currency to hand over to Mr. Kenny at Hongkong. The Customs officials apprehended Mr. Subhash Dudani who in his statement recorded under. Section 108 stated that foreign exchange given to Solanki was received from one Mr. Rajesh Sukhawani. Thereafter, the Customs officials traced the petitioner and had searched his premises on December 21, 1991, in his absence, but nothing incriminating was recovered.

2. The Customs officials initiated proceedings for confiscation of foreign exchange and used the statement of Mr. Dudani against the petitioner. After enquiry and giving an opportunity to the petitioner, the Additional Collector confiscated the foreign currency and imposed a penalty of Rs.1 lakh. When t