2026-VIL-263-CESTAT-DEL-CU
  1. Home
  2. 2026-VIL-263-CESTAT-DEL-CU

CUSTOMS CESTAT Cases

Customs - Jurisdiction of Customs Authorities over Foreign Currency Transactions – Confiscation of foreign currency from employee who was carrying the foreign currency on behalf of company to handle the travel, stay etc - Whether the Customs Authorities had the jurisdiction to confiscate the foreign currency and impose penalties under the Customs Act, 1962, or whether the proceedings should have been initiated under the Foreign Exchange Management Act (FEMA), 1999 – HELD - The historical evolution of the laws regulating foreign exchange transactions, from the Foreign Exchange Regulation Act (FERA), 1947 to the Foreign Exchange Management Act (FEMA), 1999. It was observed that under the FERA, 1947, the Customs authorities were empowered to deal with certain contraventions related to foreign exchange transactions by virtue of the deeming provision in Section 23A, which deemed the restrictions under FERA to be prohibitions under the Customs Act, 1962. However, this deeming provision was not carried forward in the FEMA, 1999, which was enacted as a comprehensive and self-sufficient legislation to regulate foreign exchange transactions - The deliberate omission of the deeming provision in the FEMA, 1999 indicated the legislative intent to rescind the dual machinery of the Customs authorities and the Enforcement Directorate in dealing with foreign exchange transactions. The FEMA, 1999 did not empower the Customs authorities to confiscate foreign currency or impose penalties for contraventions of the FEMA. The impugned proceedings are beyond the jurisdiction of the Customs authorities and were required to be initiated under the FEMA, 1999 - The confiscation of the foreign currency and the penalties imposed under the Customs Act, 1962, are set aside as the customs authorities lacked the jurisdiction to initiate such proceedings – The appeals are allowed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

Analysis of Union Budget 2026-27:
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?