Mens rea and bona fide purchase defeated automatic customs penalty, leaving no referable question of law.

Confiscation and redemption fine under the Customs Act, 1962 were not held to follow automatically in the absence of mens rea, particularly where the Tribunal had found the purchasers to be bona fide and without knowledge of the seller's ineligibility. The Court noted that the existing judicial view did not support penalty against a purchaser of imported goods who lacked knowledge of the violation. On that factual and legal basis, no referable question of law was shown to arise, and the petition was dismissed.

---

---

Issues: Whether any question of law arose for reference on the issue whether redemption fine or confiscation under the Customs Act, 1962 could be imposed in the absence of mens rea, particularly where the purchasers were bona fide purchasers without knowledge of any violation.

Analysis: The Tribunal had already held, on the facts, that the concerned purchasers were bona fide purchasers without knowledge of the seller's ineligibility and had set aside the penalty against some of them while reducing the penalty against others. The Court noted that the statutory scheme governing confiscation and redemption fine under the Customs Act, 1962 did not support automatic penal consequences irrespective of mens rea. It further noticed that the existing judicial view recognised that a purchaser of imported goods, lacking knowledge of the violation, could not be subjected to penalty. In these circumstances, no referable question of law was shown to arise.

Conclusion: No question of law arose for reference, and the petition was dismissed.

---