Confiscation of sub-standard imports upheld, but curable defects and lack of knowledge led to reduced redemption fine and no penalty.

Imported goods that did not meet I.P. standards were liable to confiscation, because the non-conformity existed at the time of import; confiscation was therefore upheld. However, the defect was curable, the drugs control authorities permitted reprocessing, and the importers could rectify the deficiency so the goods could later satisfy the required standards. On that basis, the redemption fine was reduced, as the goods were not to be treated on the same footing as imports made in clear violation of customs law. Penalty was set aside because the record did not show that the importers knew the goods were sub-standard.

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Issues: Whether confiscation of the imported consignment of sub-standard goods was justified, and whether the redemption fine and penalty were liable to be sustained.

Analysis: The imported goods admittedly did not conform to the required I.P. standards at the time of import, so confiscation was technically justified. However, the defect was found to be curable, the drugs control authorities had permitted reprocessing, and the appellants were capable of rectifying the deficiency so that the goods could later meet the required standards. In those circumstances, the goods were not to be treated on the same footing as other imports made in violation of customs law. The record also did not establish that the appellants had knowledge that the goods were sub-standard, which was relevant to the question of penalty.

Conclusion: Confiscation was upheld, the redemption fine was reduced, and the penalty was set aside.

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