Redemption fine requires determined margin of profit before it can be sustained; matter remanded for fresh examination.

Where redemption fine is imposed under Section 125 of the Customs Act by reference to margin of profit, that margin must be determined on the record before the fine can be sustained. Because the orders below did not work out the margin of profit, the matter could not be finally upheld on the existing record. The matter was therefore remanded to the adjudicating authority for fresh examination after hearing the parties and for a new order in accordance with law.

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Issues: Whether the redemption fine imposed under Section 125 of the Customs Act required reconsideration for want of determination of the margin of profit.

Analysis: The quantum of margin of profit on the goods was not worked out in the orders below, though the redemption fine was stated to be based on that factor. In the absence of such determination, the matter could not be finally sustained on the existing record and had to be sent back for fresh examination after granting an opportunity of hearing.

Conclusion: The matter was remanded to the adjudicating authority to reconsider the redemption fine afresh by working out the margin of profit under Section 125 of the Customs Act and to pass a fresh order in accordance with law.

Final Conclusion: The appeal succeeded to the extent of remand, and the impugned matter was directed to be decided afresh.

Ratio Decidendi: Where redemption fine is imposed by reference to margin of profit, the authority must determine that margin on the record before sustaining the fine.

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