Import condition breach supports confiscation, but innocent purchaser status can justify reduction of redemption fine.

Breach of an import condition prohibiting sale within five years rendered the imported printing machine liable to confiscation under section 111(o), and the purchaser's lack of knowledge did not defeat that consequence. The appellant's claimed innocence was, however, relevant to the monetary consequence, so the redemption fine was reduced from Rs. 5 lakhs to Rs. 1.5 lakhs. Confiscation remained undisturbed, while relief was confined to reduction of the fine.

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Issues: Whether confiscation of the imported printing machine under section 111(o) was justified for breach of the import condition prohibiting sale within five years, and whether the redemption fine deserved reduction in view of the appellant's claimed innocence.

Analysis: The machine was liable to confiscation because the condition attached to its import had been contravened. The appellant's lack of knowledge of that condition did not negate the legal consequence of the breach. At the same time, the order recognised the appellant as an innocent purchaser, which was relevant to the quantum of fine.

Conclusion: Confiscation was upheld, but the redemption fine was reduced from Rs. 5 lakhs to Rs. 1.5 lakhs, partly in favour of the appellant.

Final Conclusion: The appeal succeeded only to the extent of reduction in the redemption fine, while the confiscation order remained undisturbed.

Ratio Decidendi: Breach of an import condition renders the goods liable to confiscation notwithstanding the purchaser's innocence, though innocence may justify reduction of redemption fine.

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