Commercial quantity must be proved before confiscation or denial of release under customs law can rest on value alone.

Confiscation of exported garments and foreign currency could not be sustained where the record did not establish that the goods were in commercial quantity. The seizure schedule omitted the quantity of the shirts, T-shirts and ladies suits, and their value alone was insufficient to prove commercial quantity. A cash receipt for purchase in India was also produced. Because commercial quantity was not proved, the basis for refusing release under Section 125 of the Customs Act, 1962 failed, and release on payment of fine could not be denied on value alone.

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Issues: Whether the confiscation of the exported goods and foreign currency could be sustained on the footing that the goods were in commercial quantity and, if not, whether the appellant was entitled to release of the goods on payment of fine under Section 125 of the Customs Act, 1962.

Analysis: The quantity of the seized shirts, T-shirts and ladies suits was not shown in the seizure schedule; only their value was mentioned. On that record, the conclusion that the goods were in commercial quantity was not established. The value of the goods, by itself, was not treated as decisive of commercial quantity. A cash receipt for purchase of the goods in India was also produced. Since the goods were not shown to be in commercial quantity, the basis for denying release under Section 125 failed.

Conclusion: The confiscation was set aside and the appeal was allowed.

Ratio Decidendi: Where commercial quantity is not proved, confiscation cannot be sustained merely on the value of the goods, and release under Section 125 of the Customs Act, 1962 cannot be refused on that basis alone.

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