Redemption fine and penalty on imported almonds were set aside after no mala fide intention was shown.

Imported almonds ordered for re-export after failing food safety standards were examined on the question whether redemption fine and penalty could be sustained without proof of mala fide intention. The Tribunal noted that the goods had been tested in the country of export as being in good condition, and that more than two months had passed between shipment and testing in India, during which deterioration in transit could not be ruled out. On those facts, the importer was not shown to have acted with mala fide intent, so the legal basis for redemption fine and penalty was found not to survive and both were set aside.

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Issues: Whether redemption fine and penalty imposed on imported almonds, which were ordered for re-export after being found not conforming to food safety standards, were sustainable in the absence of mala fide intention.

Analysis: The imported goods had been tested in the country of export and were found to be in good condition. The Tribunal noted that more than two months had elapsed between shipment and testing in India, during which the goods could have suffered deterioration in transit. On these facts, the Tribunal found that the importer was not shown to have acted with any mala fide intention. In such circumstances, the basis for imposing redemption fine and penalty did not survive.

Conclusion: The redemption fine and penalty were set aside.

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