Customs penalty reduction where liability was admitted and surrounding facts justified lowering the quantum.

Liability under Section 112(b) of the Customs Act was not disputed, and the appeal was confined to reduction of penalty. The quantum was reconsidered in light of the appellant's limited role, absence of any ownership claim over the goods, the comparatively lower penalties imposed on co-noticees, and stated financial hardship. On that factual basis, the penalty was held excessive and was reduced, while the remainder of the adjudication order was maintained.

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Issues: Whether the penalty imposed under Section 112(b) of the Customs Act was liable to be reduced on the facts and circumstances of the case.

Analysis: The appeal did not dispute the finding of liability on merits and pressed only for reduction of the penalty amount. The limited role attributed to the appellant, the absence of a claim of ownership over the goods, the comparative penalties imposed on co-noticees, and the appellant's stated financial hardship were taken into account in assessing the quantum of penalty.

Conclusion: The penalty was found excessive and was reduced from Rs. 2 lakhs to Rs. 25,000/-, while the rest of the adjudication order was maintained.

Ratio Decidendi: Where liability is not contested, the quantum of penalty under customs law may be reduced on a consideration of the surrounding facts, relative culpability, and overall circumstances.

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