Redemption fine for confiscated vehicle must match the vehicle's market price, not the seized commodity's value.

Under the second proviso to Section 6A(1) of the Essential Commodities Act, the ceiling on fine in lieu of confiscation is linked to the vehicle liable to confiscation, not to the essential commodity carried in it. The SC held that the statutory scheme of Sections 6A to 7 treats the conveyance as part of the confiscation regime and makes the redemption amount referable to the vehicle's market price on the date of seizure. The Customs Act analogy was rejected because the language of the two provisions differs. The High Court's contrary view was set aside and the appeals succeeded.

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Issues: Whether, under the second proviso to Section 6A(1) of the Essential Commodities Act, 1955, the fine payable in lieu of confiscation of a vehicle is to be measured by the market price of the vehicle or by the market price of the essential commodity carried in it.

Analysis: The statutory scheme of Sections 6A to 7 shows that confiscation may extend not only to the essential commodity but also to the vehicle used in carrying it, and that the proviso grants only a limited option to the owner to redeem the vehicle by payment of a fine. Reading the proviso in that setting, the expression fixing the ceiling of fine is linked to what is sought to be confiscated, namely the vehicle, rather than to the commodity seized. The reference in Section 7 to forfeiture of the vehicle and other conveyances reinforces that the legislature intended the redemption amount to be related to the vehicle's market price on the date of seizure. The analogy drawn from the Customs Act was held inapposite because the wording of the two provisions is different.

Conclusion: The fine in lieu of confiscation under the second proviso to Section 6A(1) is relatable to the market price of the vehicle and not to the market price of the essential commodity seized.

Final Conclusion: The impugned view of the High Court was set aside and the appeals succeeded on the interpretation of the redemption fine provision governing confiscated vehicles.

Ratio Decidendi: Where a statute authorises an option to pay fine in lieu of confiscation of a conveyance used for carriage of contraband or regulated goods, the maximum fine is determined by the market price of the conveyance itself when the statutory scheme treats the conveyance as the thing liable to confiscation.

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