Confiscation must be limited to undeclared goods, with redemption fine and penalty reduced where the liable quantity is limited.

Confiscation under customs law was held to be confined to the undeclared 5 mm steel sheets, because the remaining imported re-rollable scrap had been declared and could not be brought within the confiscation action. The description and value of the declared goods had been amended, and the valuation of the undeclared steel sheets at US$ 250 per M.T. was not disputed. In these circumstances, the redemption fine and penalty were moderated in view of the limited value of the goods liable to confiscation. Confiscation of the re-rollable scrap was set aside, while confiscation and valuation of the undeclared steel sheets were upheld.

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Issues: Whether confiscation could be sustained against the entire imported consignment when only a portion of the goods was found to be undeclared, and whether the redemption fine and penalty required reduction in the circumstances.

Analysis: The imported goods were partly declared as heavy melting scrap and partly found to be re-rollable scrap, with only the steel sheets of 5 mm thickness remaining wholly undeclared. The description and value of the declared goods had been amended, and the duty valuation of the undeclared steel sheets at US$ 250 per M.T. was not contested. On the facts, confiscation could not extend to the declared re-rollable scrap, and the consequences had to be confined to the undeclared steel sheets alone. As the value of the goods liable to confiscation was comparatively limited, the redemption fine and penalty were also required to be moderated.

Conclusion: Confiscation of the re-rollable scrap was set aside, confiscation and valuation of the undeclared steel sheets were upheld, and the redemption fine and penalty were reduced.

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