Import restrictions and timing of shipment justified reduction of redemption fine and penalty for multifunctional devices.

Import of multifunctional devices was examined against the timing of the purchase order, shipment and the later restriction under paragraph 2.17 of the Foreign Trade Policy, 2009-2014. As the goods had been ordered and received at the port before the restrictive amendment took effect, a very high penalty was considered unwarranted, and the declared and enhanced values supported moderation of the redemption fine. The punishment was therefore reduced on the facts, with the redemption fine and penalty brought down to Rs. 3,15,000 and Rs. 15,000 respectively.

---

---

Issues: Whether the redemption fine and penalty imposed on import of multifunctional devices were justified in view of the timing of the purchase order, shipment and subsequent restriction under paragraph 2.17 of the Foreign Trade Policy, 2009-2014.

Analysis: The goods had been ordered and received in the port before the amendment restricting import of such devices came into force. In these circumstances, the imposition of a very high penalty was held to be unwarranted. The declared value and enhanced value also indicated that the redemption fine could be moderated. The relief was therefore tailored to the facts by reducing both components of the punishment.

Conclusion: The redemption fine and penalty were reduced to Rs. 3,15,000 and Rs. 15,000 respectively, giving partial relief to the appellant.

---