Lenient treatment of re-export-bound imports led to waiver of penalty and reduction of redemption fine.

Imported goods marked for re-export were dealt with leniently because the importers had no prior offence and could not clear the consignment due to non-availability of the required Drugs Control certificate. In those circumstances, examination of valuation was treated as unnecessary, and the heavy redemption fine and penalty were found unjustified on the facts. The penalty was set aside and the redemption fine was reduced to a token amount, with release of the goods and immediate re-export directed.

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Issues: Whether the redemption fine and penalty imposed on imported goods liable to be re-exported required interference, and whether valuation of the goods needed to be examined in the circumstances.

Analysis: The goods were to be re-exported, the importers had no past offence, and their inability to clear the goods arose from non-availability of the required certificate from the Drugs Control Authorities. In that situation, the question of valuation was treated as unnecessary to examine, and a lenient approach was considered appropriate. The heavy fine and penalty were found unjustified in the facts of the case.

Conclusion: The penalty was set aside and the redemption fine was reduced to a token amount of Rs. 25,000, with release and immediate re-export of the consignment.

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