Bona fide import conduct defeats customs penalty where no conscious disregard of statutory duty is shown.

Penalty under Section 112 of the Customs Act, 1962 was held unwarranted where confiscation of the goods was ordered but the importer's conduct was found bona fide. The authorities noted no negligence, deliberate defiance, contumacious conduct, or conscious disregard of statutory duty, and treated the absence of a contravention attracting penalty as justified. On that basis, the imposition of penalty was declined and the Revenue's challenge failed.

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Issues: Whether penalty under Section 112 of the Customs Act, 1962 was warranted for import of confiscated goods in the facts of the case.

Analysis: The goods were ordered to be confiscated, but the authorities below declined to impose penalty on the footing that there was no contravention attracting Section 112. The importer's conduct was found to be bona fide, with no negligence, deliberate defiance, contumacious conduct, or conscious disregard of statutory obligation. In these circumstances, the absence of penalty was treated as justified.

Conclusion: Penalty under Section 112 of the Customs Act, 1962 was not required to be imposed, and the Revenue's challenge failed.

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