Redemption fine and penalty on restricted second-hand imports upheld where undervaluation and policy restrictions were established.

Import of second-hand restricted goods justified redemption fine and penalty where the declared value was not accepted and was enhanced on the basis of the Chartered Engineer's report. The importer did not press the challenge to valuation and confined the dispute to the quantum of fine and penalty. On the finding that the goods were incorrectly valued and the import was hit by Foreign Trade Policy restrictions, the redemption fine and penalty were treated as reasonable, and no reduction was warranted.

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Issues: Whether the redemption fine and penalty imposed on import of second-hand restricted goods warranted reduction.

Analysis: The imported machines were second-hand goods and were treated as restricted items. The declared value was not accepted by the department, and the value was enhanced on the basis of the local Chartered Engineer's report. The appellant did not press the challenge to the enhanced value and confined the dispute to the quantum of redemption fine and penalty. In the circumstances, the finding that the goods were not correctly valued and that the import attracted the restrictions under the Foreign Trade Policy supported the imposition of fine and penalty.

Conclusion: The redemption fine and penalty were held to be reasonable and no interference was warranted.

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