Restricted import without licence supports confiscation, but redemption fine and penalty must remain proportionate to the facts.

Import of restricted old and used worn clothing without the mandatory licence justified confiscation under Section 111(d) of the Customs Act, 1962. The Tribunal held that confiscation could stand for breach of the licensing requirement, but redemption fine and penalty had to remain reasonable and proportionate to the ascertained value and the facts of the case. On that basis, the Commissioner (Appeals)' reduced fine and penalty were found adequate, and the Revenue's request for enhancement was rejected.

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Issues: Whether, in a case of import of restricted old and used worn clothing without the requisite licence, the confiscation was sustainable and the redemption fine and penalty required interference.

Analysis: The imported goods were treated as restricted for want of the requisite specific licence, and the confiscation under Section 111(d) of the Customs Act, 1962 was upheld. The Tribunal followed its earlier view that, even where confiscation is justified for breach of the licensing requirement, the quantum of redemption fine and penalty must be reasonable and aligned with the facts and the ascertained value. In the present case, the Revenue sought enhancement, but the prior precedent supported the view that the reduced figures already fixed by the appellate authority were adequate to meet the ends of justice.

Conclusion: The confiscation was sustained, and the redemption fine and penalty as confirmed by the Commissioner (Appeals) were held to be and not liable to further enhancement.

Final Conclusion: The Revenue's challenge failed, and the appellate order was left undisturbed.

Ratio Decidendi: Where import is effected without the mandatory licence for a restricted item, confiscation may stand, but the redemption fine and penalty must be proportionate to the ascertained value and the circumstances of the case.

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