Redemption fine and confiscation cannot stand on assessed import value alone without evidence of deliberate under-invoicing.

Where customs relied on the assessed import value for licence purposes, a redemption fine in lieu of confiscation could not be sustained without material showing deliberate under-invoicing. The assessed value alone was insufficient to justify the licence-related confiscation consequence, and the fine was therefore set aside in favour of the assessee.

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Issues: Whether the redemption fine of Rs. 65,000 imposed in lieu of confiscation could be sustained on the basis of the assessed import value for licence purposes in the absence of material showing deliberate under-invoicing.

Analysis: The import value assessed by customs was relied upon for determining the licence position, but the record disclosed no material indicating deliberate under-invoicing by the importer. In the absence of such material, the assessed value could not be treated as sufficient justification for the licence-related consequence of confiscation and redemption fine.

Conclusion: The redemption fine was not sustainable and was set aside in favour of the assessee.

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