Redemption fine on confiscated imported machinery reduced where a State department acted on governmental exemption directives.

Redemption fine imposed on confiscated imported machinery was considered in light of the appellant being a State Government department that had acted against the background of governmental directives and representations on customs duty exemption. The dispute was confined to the quantum of fine, and the Tribunal held that partial relief was justified on the facts. The redemption fine was reduced from Rs. 4 lakhs to Rs. 1 lakh, and the appeal succeeded to that extent.

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Issues: Whether the redemption fine imposed on the appellant for confiscation of the imported machinery should be interfered with and reduced.

Analysis: The appellant was a State Government department and had purchased the machinery in the background of governmental directives and representations regarding exemption from customs duty. The controversy before the Tribunal was confined to the quantum of redemption fine, and in the circumstances of the case the Tribunal found that justice would be met by granting partial relief.

Conclusion: The redemption fine was reduced from Rs. 4 lakhs to Rs. 1 lakh and the appeal was allowed to that extent.

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