W.P.No.140 of 2023

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 06.02.2023

CORAM :

The HONOURABLE MR.JUSTICE ABDUL QUDDHOSE

W.P. No.140 of 2023

Maddi Narayana

.. Petitioner

vs

1. Additional Secretary,

Government of India,

Ministry of Finance,

14, Hudco Vishala Buildings,

B Wing,

6th Floor,

Bhikaji Cama Place,

New Delhi - 110 066.

2. The Principal Commissioner of customs,

Commissionerate - I,

New Custom House,

Air Cargo complex,

Meenambakkam,

Chennai - 600 027.

... Respondents

Petition filed under Article 226 of the Constitution of India

praying to issue a writ of Certiorarified Mandamus, to call for the files

relating to the order passed in Order No.305/2022 in

F.No.373/179/B/2016-RA, dated 30.09.2022 and to quash the same with

a direction to the first respondent to release the goods on redemption fine

mandated under Section 125 of the Customs Act, 1962 or to remand back

the case to the First Respondent.

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W.P.No.140 of 2023

For Petitioner

:

Mr.T. Chezhiyan

For Respondents

:

No appearance for R1

Mr.K.S. Ramaswamy,

Junior Panel Counsel for R2

ORDER

By consent of both the parties, this writ petition is taken up for

final disposal in the admission stage itself.

2. Mr.K.S. Ramaswamy, learned Junior Panel Counsel accepts

notice for the 2^nd respondent.

3.The only point that arises for consideration in this writ petition

is whether the Original Authority has exercised his discretion correctly

by rejecting the petitioner's application filed under Section 125 of the

Customs Act, 1962 seeking for redemption of Indian and Foreign

currencies confiscated from the petitioner by paying fine.

4. Section 125 of the Customs Act, reads as follows :-

125. Option to pay fine in lieu of confiscation.—

(1)Whenever confiscation of any goods is authorised by this Act, the

officer adjudging it may, in the case of any goods, the importation or

exportation whereof is prohibited under this Act or under any other

law for the time being in force, and shall, in the case of any other

goods, give to the owner of the goods 1[or, where such owner is not

known, the person from whose possession or custody such goods have

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W.P.No.140 of 2023

been seized,] an option to pay in lieu of confiscation such fine as the

said officer thinks fit:

[Provided that, where the proceedings are deemed to be

concluded under the proviso to sub-section (2) or Section 28 or under

clause (i) of sub-section (6) of that section in respect of the goods

which are not prohibited or restricted, "[no such fine shall be

imposed].

Provided further that], without prejudice to the provisions of

the proviso to sub-section (2) of section 115, such fine shall not

exceed the market price of the goods confiscated, less in the case of

imported goods the duty chargeable thereon].

[(2) Where any fine in lieu of confiscation of goods is imposed

under sub-section (1), the owner of such goods or the person referred

to in sub-section (1), shall, in addition, be liable to any duty and

charges payable in respect of such goods.]

[(3) Where the fine imposed under sub-section (1) is not paid

within a period of one hundred and twenty days from the date of option

given thereunder, such option shall become void, unless an appeal

against such order is pending.

Explanation.--For removal of doubts, it is hereby declared that

in cases where an order under sub-section (1) has been passed before

the date on which the Finance Bill, 2018 receives the assent of the

President and no appeal is pending against such order as on that date,

the option under said sub-section may be exercised within a period of

one hundred and twenty days from the date on which such assent is

received.]

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W.P.No.140 of 2023

5. The petitioner contends that foreign and Indian currencies

confiscated being a restricted item, they are en