Misdeclaration of export goods without mala fide intent led to reduction of redemption fine and penalty.

Misdeclaration of export goods justified monetary consequences, but the absence of any finding that the exporters had exceeded the relevant quota or acted with mala fide intent meant the original redemption fine and penalty were excessive. The goods were not chargeable to duty, and the declaration was made on the basis of the foreign buyers' purchase order. In those circumstances, deliberate misdeclaration was not established, so the redemption fine and penalty were reduced.

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Issues: Whether the redemption fine and penalty imposed for misdeclaration of export goods were liable to be reduced in the absence of any finding that the exporters had exceeded the relevant quota or acted with mala fide intent.

Analysis: The goods exported were found to have been misdeclared, but the record did not contain any finding that the exporters had crossed the quota applicable to the category under which the goods were treated by the department. The goods were not chargeable to duty, and the declaration had been made on the basis of the foreign buyers' purchase order. In these circumstances, deliberate misdeclaration or mala fide intent was not established, making the original monetary penalties excessive.

Conclusion: The redemption fine and penalty were reduced.

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