Redemption of confiscated imports for home consumption upheld where goods were not absolutely prohibited and fine was not excessive.

Imported goods that are not absolutely prohibited may be allowed to be redeemed for home consumption on payment of redemption fine, even where confiscation under the Customs Act is sustained. In this matter, the absence of a valid BIS certificate and the quality control regime did not justify confining the new passenger car radial tyres to re-export, because they were not barred from entry into India altogether. The appellate authority's decision to permit clearance for home consumption on the existing redemption fine was upheld, and interference with the quantified fine was refused in the absence of proof that it was excessive or legally unsustainable.

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Issues: Whether the confiscated imported tyres could be redeemed for clearance for home consumption instead of being confined to re-export, and whether the redemption fine imposed warranted interference.

Analysis: The imported goods were found to be new passenger car radial tyres, and the dispute turned on the effect of the quality control regime and the absence of a valid BIS certificate. The confiscation under Section 111(d) of the Customs Act, 1962 was not displaced, but the appellate authority held that the goods were not barred from being brought into India at all and that re-export was an unduly harsh consequence. The redemption fine already fixed by the adjudicating authority was maintained, and no material was shown by the revenue to establish that the fine was excessive or that the appellate authority had acted without basis in permitting home consumption on payment of the same fine.

Conclusion: The conversion of the order from re-export to clearance for home consumption at the same redemption fine was upheld, and no interference was called for with the quantified redemption fine.

Final Conclusion: The revenue challenge failed, and the appellate order allowing redemption of the goods for home consumption on the existing fine was sustained.

Ratio Decidendi: Where confiscated imported goods are not absolutely prohibited, the appellate authority may permit redemption for home consumption on payment of redemption fine, and interference with the fine is unwarranted absent proof of excessiveness or legal error.

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