Import licence non-compliance sustains confiscation, while reduced redemption fine and penalty were upheld as adequate on the facts.

Imported old and used worn clothing was treated as restricted goods requiring a valid specific licence, and confiscation under Section 111(d) of the Customs Act, 1962 was sustained for non-compliance with the licensing requirement. The Tribunal held that the reduced redemption fine and penalty confirmed by the Commissioner (Appeals) were adequate on the facts and consistent with the ends of justice, relying on Venus Traders. It found no infirmity in the reduced amounts and declined to restore the higher quantum sought by the Revenue.

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Issues: Whether the reduction of redemption fine and penalty imposed on the import of old and used worn clothing was justified, and whether the Revenue could seek restoration of the higher amounts.

Analysis: The imported goods were treated as restricted goods requiring a valid specific licence, and confiscation under Section 111(d) of the Customs Act, 1962 was upheld in view of non-compliance with the licensing requirement. The Tribunal relied on the earlier decision in Venus Traders to hold that, on the facts of the case, the redemption fine and penalty already confirmed by the Commissioner (Appeals) were sufficient to meet the ends of justice. The Tribunal found no infirmity in the reduced amounts and declined to interfere with the appellate order.

Conclusion: The reduction of redemption fine to 10% and penalty to 5% was upheld, and the Revenue's challenge to the impugned order failed.

Ratio Decidendi: Where confiscation is sustained for import without the required licence, the quantum of redemption fine and penalty will not be interfered with if the appellate authority's reduction is found adequate on the facts and consistent with the ends of justice.

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