Redemption fine and penalty enhancement rejected where ship-breaking began in bonded area to prevent vessel damage.

Commencing ship-breaking before payment of duty did not justify enhancement of the redemption fine or penalty where the vessel remained within the Customs bonded area and the importers explained that breaking was started only to lighten the vessel and prevent damage from high tide. The adjudicating authority had already considered those circumstances in fixing the original sanctions, and no material was shown to support a higher quantum. Enhancement of both the redemption fine and the penalty was therefore not warranted.

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Issues: Whether the Revenue had shown any ground for enhancement of the redemption fine and penalty imposed on the importers for commencing ship-breaking before payment of duty.

Analysis: The vessel was not removed from the Customs bonded area. The importers explained that breaking was started to lighten the vessel and prevent damage from high tide, and the adjudicating authority had taken these circumstances into account while fixing the fine and penalty. No material was shown to justify increasing the quantum of either sanction.

Conclusion: Enhancement of the redemption fine and penalty was not warranted.

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