STPI-approved imports and bona fide belief under customs exemption notification sustained confiscation, redemption fine and penalty challenge failed.

Imported goods approved by STPI were treated as covered by Notification No. 52/2003-Cus., and the importer's bona fide belief on eligibility was accepted on the factual record. In that setting, no sufficient basis was found to interfere with confiscation, redemption fine or penalty. The challenge to the adjudicating authority's view therefore failed, and the Revenue's appeal was rejected.

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Issues: Whether confiscation of imported goods, redemption fine and penalty were justified when the importer had prior approval from STPI and acted under a bona fide belief that the goods were covered by Notification No. 52/2003-Cus.

Analysis: The imported goods had been approved by STPI and the adjudicating authority had found that the importer proceeded on the basis of such approval and a bona fide belief regarding eligibility under the notification. On that factual finding, no basis was shown to disturb the view taken on confiscation, redemption fine and penalty.

Conclusion: The challenge to confiscation, redemption fine and penalty failed and the Revenue's appeal was rejected.

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