The CESTAT Kolkata ruled that Indian currency cannot be confiscated under the Customs Act without clear evidence linking it to smuggling. Investigative statements alone do not suffice to justify cash seizure.
No Confiscation of Indian Currency Without Proof Linking It to Smuggling: CESTAT Kolkata
The CESTAT Kolkata has clarified that confiscation of Indian currency under Section 121 of the Customs Act requires concrete evidence connecting such currency to smuggled goods. The Tribunal's ruling emphasizes that investigative statements alone are inadequate to justify cash seizures.
The case involved the seizure of Indian currency purportedly as sale proceeds of smuggled gold. The Tribunal found that evidence showing a direct link between the currency and illegal activities was missing. According to the ruling, without proof, the authorities cannot resort to confiscation.
This decision sets a crucial precedent for customs enforcement and highlights the need for robust evidence in currency seizure cases. Practitioners must ensure that adequate documentation supports any claims of smuggling when dealing with currency confiscation.
Citations
- CESTAT Kolkata (2026)
