Redemption fine for undervalued restricted imports sustained, while penalty was reduced on overall facts and circumstances.

Undervaluation and import of restricted used second-hand photocopier machines justified imposition of both redemption fine and penalty, with the importer's repeated prior imports treated as an aggravating factor. On that basis, the redemption fine was maintained and not reduced. Considering the overall facts and circumstances, however, the penalty was moderated and reduced to Rs. 2,50,000. The decision reflects that habitual non-compliance in restricted imports may support sustaining redemption fine, while penalty can still be adjusted downward where the broader facts warrant partial relief.

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Issues: Quantum of redemption fine and penalty payable in respect of import of used second-hand photocopier machines despite undervaluation and violation of the import restrictions.

Analysis: The goods were found to have been undervalued and imported in breach of the applicable import restrictions, and the only dispute was the extent of redemption fine and penalty. The Tribunal noted the appellant's repeated imports of similar goods on earlier occasions and treated this as a relevant aggravating factor. In those circumstances, it declined to interfere with the redemption fine. At the same time, considering the overall facts and circumstances, it found that the penalty warranted reduction.

Conclusion: The redemption fine was not reduced, but the penalty was reduced to Rs. 2,50,000, granting the appellant partial relief.

Final Conclusion: The appeal succeeded only to the limited extent of reduction in penalty, while the redemption fine was maintained.

Ratio Decidendi: In cases of undervaluation and repeated illegal import of restricted goods, redemption fine need not be reduced where the importer is a habitual offender, though penalty may be moderated on the overall facts.

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