Re-export of confiscated goods allowed; limited sample evidence could not justify extending findings to all coils.

Permission to re-export confiscated goods was granted where hardship was shown and the importer did not wish to continue the importation or manufacture activity. A finding based on examination of only three coils was held insufficient to extend to the remaining coils, so the confiscation was maintained on the proved facts but the redemption fine was reduced. The penalty was not sustained, and enhancement of value was no longer in issue once re-export was allowed.

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Issues: (i) whether permission could be granted to re-export the confiscated goods; (ii) whether the finding based on examination of only a few coils could be extended to the remaining coils and the consequential redemption fine, penalty, and enhancement of value could be sustained in the same form.

Issue (i): whether permission could be granted to re-export the confiscated goods.

Analysis: In view of the hardship pleaded and the position that the importer did not wish to continue the importation or manufacture activity, permission to re-export was considered appropriate.

Conclusion: Permission to re-export the confiscated goods was granted.

Issue (ii): whether the finding based on examination of only a few coils could be extended to the remaining coils and the consequential redemption fine, penalty, and enhancement of value could be sustained in the same form.

Analysis: The finding based on examination of only three coils could not be safely extended to the other coils. The liability to confiscation was maintained, but the redemption fine was reduced having regard to the comparative quantum earlier imposed. The penalty was not sustained, and once re-export was permitted, enhancement of value no longer arose for consideration.

Conclusion: The confiscation was upheld, the redemption fine was reduced, the penalty was set aside, and enhancement of value was not sustained.

Final Conclusion: The appeal resulted in partial relief by allowing re-export, reducing the redemption fine, and setting aside the penalty while maintaining confiscation.

Ratio Decidendi: Where the factual basis for classification is confined to a limited sample and hardship justifies it, re-export may be permitted and ancillary fiscal consequences may be moderated, while confiscation can still be maintained on the proved facts.

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