Restricted import without licence: confiscation sustained, while redemption fine and penalty may be moderated on the facts.

Restricted imports of old and used worn clothing brought in without the required licence were treated as liable to confiscation under Section 111(d) of the Customs Act, 1962. The commentary notes that, where the licensing requirement is admittedly not complied with and the material before the authority is limited, confiscation may be sustained while the redemption fine and penalty may be moderated to meet the ends of justice. Applying that approach, the reduced redemption fine and penalty fixed by the appellate authority were found adequate on the facts, and no infirmity was shown in the challenged order. The Revenue's challenge therefore failed.

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Issues: Whether the reduction of redemption fine and penalty imposed on the importer, in the context of confiscation of old and used worn clothing imported without the required licence, called for interference.

Analysis: The import was of restricted goods and the absence of the required import licence justified confiscation under Section 111(d) of the Customs Act, 1962. The Tribunal followed its earlier view that, where the licensing requirement is admittedly not complied with and the material available is limited, confiscation can be sustained while the quantum of redemption fine and penalty may be moderated to meet the ends of justice. On the facts, the reduced amounts fixed by the appellate authority were found to be sufficient and no infirmity was shown in the order under challenge.

Conclusion: The reduced redemption fine and penalty were upheld and the challenge by the Revenue failed.

Ratio Decidendi: In cases of restricted imports made without the required licence, confiscation under Section 111(d) of the Customs Act, 1962 may be sustained, and the quantum of redemption fine and penalty may be reduced where the circumstances justify moderation.

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