Redemption fine and duplicate customs penalty barred where goods were not seized and Section 114A penalty already applied.

Redemption fine was not warranted because the imported goods were not seized and were only recorded as liable to confiscation, so the absence of such fine disclosed no legal error. Penalty under Section 112 of the Customs Act, 1962 was also not permissible where penalty under Section 114A had already been imposed for the same default. The Revenue's challenge therefore failed on both grounds, and the adjudication order was upheld.

---

---

Issues: (i) Whether redemption fine could be imposed when the imported goods had not been seized and were only held liable to confiscation. (ii) Whether penalty under Section 112 of the Customs Act, 1962 could be imposed when penalty under Section 114A of the Customs Act, 1962 had already been imposed.

Issue (i): Whether redemption fine could be imposed when the imported goods had not been seized and were only held liable to confiscation.

Analysis: Redemption fine is ordinarily linked with confiscation of goods that are available for redemption. Here, the goods were never seized by the Customs authorities. The adjudicating authority had only recorded that the goods were liable to confiscation. On that footing, the absence of redemption fine did not disclose any legal error.

Conclusion: Redemption fine was not required to be imposed.

Issue (ii): Whether penalty under Section 112 of the Customs Act, 1962 could be imposed when penalty under Section 114A of the Customs Act, 1962 had already been imposed.

Analysis: The impugned order had imposed penalty under Section 114A of the Customs Act, 1962. In such a situation, the statutory scheme bars imposition of penalty under Section 112 of the Customs Act, 1962 for the same default. The objection raised by the Revenue therefore had no merit.

Conclusion: Penalty under Section 112 could not be imposed in addition to penalty under Section 114A.

Final Conclusion: The Revenue's challenge failed on both grounds, and the adjudication order was upheld.

Ratio Decidendi: Where goods are not seized and are only held liable to confiscation, redemption fine is not warranted; and where penalty is imposed under Section 114A of the Customs Act, 1962, a further penalty under Section 112 of the same Act is not permissible for the same contravention.

---