Restricted import goods: confiscation sustained, but redemption fine and penalty reduced due to later relaxation and unequal treatment.

Imported stainless steel pipes were treated as restricted goods at the time of import and Bill of Entry filing, so confiscation was upheld. The restriction was later withdrawn, and importers who had not filed Bills of Entry during the restricted period were able to clear similar goods without licence. In that context, the importer was not at fault for the timing situation, but the disparity in treatment justified relief. Redemption fine and penalty were therefore reduced, while confiscation was not interfered with.

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Issues: Whether the confiscation of imported restricted goods and the consequent redemption fine and penalty were sustainable, and whether the quantum of redemption fine and penalty required reduction.

Analysis: The imported stainless steel pipes fell within the restricted category under the relevant DGFT notification during the period of import and filing of the Bill of Entry. The restriction was later withdrawn, and similarly placed importers who had not filed Bills of Entry during the restricted period were able to clear the goods without licence. In the circumstances, the importer could not be faulted for the situation, but the disparity in treatment justified relief in the quantum imposed.

Conclusion: The confiscation was not interfered with, but the redemption fine and penalty were reduced.

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