Redemption fine and penalty on restricted second-hand imports were reduced where profit margin and differential duty were minimal.

Import of restricted second-hand goods without authorisation was treated as liable to confiscation, but the quantum of redemption fine and penalty had to be assessed with reference to the margin of profit and the low differential duty. As the duty difference across the bills of entry was relatively small, the original fine was found excessive on the facts. The redemption fine was therefore moderated to Rs. 1 lakh in each case, and the penalty was set aside.

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Issues: Whether the redemption fine and penalty imposed on import of restricted second-hand goods were liable to be reduced having regard to the margin of profit and the low differential duty.

Analysis: The imported goods were treated as restricted second-hand goods imported without authorization and were held liable to confiscation and penalty. In determining the quantum of redemption fine and penalty, the relevant considerations included the margin of profit and the extent of differential duty. The differential duty in all three bills of entry was relatively small, and the fine imposed was found to be excessive when measured against those factors. The amount of redemption fine and penalty therefore required moderation.

Conclusion: The redemption fine was reduced to Rs. 1 lakh in each case and the penalty was set aside.

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