Licence-free import confiscation upheld while reduction of redemption fine and penalty was sustained on the facts.

CESTAT Kolkata held that confiscation of imported old and used worn clothing remained sustainable under Section 111(d) of the Customs Act, 1962 because import was made without the requisite licence. On that basis, the Tribunal accepted that the appellate authority could reduce the redemption fine and penalty on the facts of the case. It also found no reason to interfere with the appellate order on the allegation of misdeclaration of value. The Revenue's challenge to the reduction in fine and penalty therefore failed.

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Issues: Whether the reduction of redemption fine and penalty, while sustaining confiscation for import without the requisite licence, called for interference in the Revenue's appeal.

Analysis: The import was found to be of old and used worn clothing, and the only surviving ground for confiscation was the absence of a valid import licence. The Tribunal followed its earlier view that, in such circumstances, confiscation under Section 111(d) of the Customs Act, 1962 is sustainable, while the reduction of redemption fine and penalty can be justified on the facts. The challenge to enhancement on the basis of alleged misdeclaration of value did not warrant interference with the appellate order.

Conclusion: The reduction of redemption fine and penalty was upheld and the Revenue's challenge failed.

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