Bona fide mistaken shipment justified re-export and made redemption fine and penalty unsustainable under customs circular guidance.

Where imported goods were accepted to have been shipped by the foreign supplier contrary to the importer's instructions, the customs circular on bona fide mistake supported re-export and contemplated nominal penalty or no penalty where bona fides were established. On that basis, confiscation-related monetary consequences were held unwarranted once re-export was permitted, and redemption fine and penalty were set aside.

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Issues: Whether redemption fine and penalty could be imposed where imported goods were accepted to have been sent by the foreign supplier contrary to the importer's instructions and re-export was permitted.

Analysis: The importer's case of mistaken shipment was accepted by the adjudicating authority, and the record showed that the goods had been sent contrary to the importer's order. The governing customs circular permitted re-export in cases of bona fide mistake and contemplated nominal penalty or no penalty where the Commissioner was satisfied about the bona fides. In these circumstances, there was no reasoned basis for confiscation-related monetary consequences when the goods were allowed to be re-exported.

Conclusion: Redemption fine and penalty were not sustainable and were set aside in favour of the appellant.

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