Suspended REP licence imports held invalid, while fine and penalty were reduced on the facts.

Imports made after suspension of the relevant REP licences were not valid, so the adverse finding on liability was sustained. On the facts, however, the monetary consequences were moderated: the fine and penalty were reduced, with credit for amounts already paid. The appeal therefore succeeded only to the limited extent of reducing the fine and penalty, while the conclusion that imports against suspended licences were impermissible was maintained.

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Issues: Whether imports made against suspended REP licences could be treated as valid, and whether the fine and penalty imposed on the appellants required modification.

Analysis: The licences stood suspended before the imports were effected, and imports could not be validly permitted against suspended licences. The adjudicating Commissioner's finding on liability was therefore sustainable. Considering the circumstances, the quantum of fine and penalty was, however, reduced.

Conclusion: The imports were not valid against the suspended licences, and the finding of liability was upheld. The fine and penalty were reduced to Rs. 2 lakhs and Rs. 1 lakh respectively, with credit of the amount already paid.

Final Conclusion: The appeal succeeded only to the limited extent of reduction in the monetary liabilities, while the adverse finding on the validity of the imports was maintained.

Ratio Decidendi: Imports made after suspension of the relevant licence are not valid, though the quantum of fine and penalty may be moderated on the facts of the case.

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