Restricted imports without a licence can be confiscated, and reduced redemption fine and penalty may be sustained on the facts.

Restricted imported goods such as old and used worn clothing may be confiscated under Section 111(d) of the Customs Act, 1962 where the required specific licence is absent and the restriction under the foreign trade policy is undisputed. On those facts, confiscation was sustainable, and the reduced redemption fine and penalty were upheld because no infirmity was shown in the earlier reduction to levels considered adequate to meet the ends of justice. The challenge to the reduced quantum therefore failed.

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Issues: Whether the reduction of redemption fine and penalty to 10% and 5% of the assessed value in respect of restricted imported goods without the required licence warranted interference.

Analysis: The import involved old and used worn clothing covered by a restriction under the foreign trade policy, and the absence of a valid specific licence was not in dispute. The confiscation under Section 111(d) of the Customs Act, 1962 was therefore sustainable. Following the earlier view of the Tribunal, the reduced fine and penalty were found to be adequate, particularly where the impugned order had already brought the amounts down and no infirmity in that exercise was shown.

Conclusion: The reduction of redemption fine to 10% and penalty to 5% was upheld and the challenge by the Revenue failed.

Ratio Decidendi: Where restricted goods are imported without the requisite licence, confiscation is maintainable, and the quantum of redemption fine and penalty may be sustained if it is found to meet the ends of justice on the facts.

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