Confiscation of restricted imports without licence upheld, with no mens rea required and fine and penalty left to administrative discretion.

Restricted imported goods brought in without the requisite DGFT licence were held liable to confiscation for violation of the Import Trade Policy, and mens rea was not required for such confiscation. Once confiscation was justified, the enhancement of redemption fine and penalty was treated as a matter within the authorities' discretion, absent arbitrariness or extraneous considerations. Authorities distinguished the importer's cited precedents on their facts, including cases involving bona fide classification disputes or remand. The enhancement of redemption fine and penalty was therefore upheld, and no substantial question of law arose in the importer's favour.

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Issues: Whether enhancement of redemption fine and penalty for import of restricted goods without the required licence gave rise to any substantial question of law, and whether mens rea was necessary for confiscation and penalty.

Analysis: The imports were of restricted goods under the Import Trade Policy and were permissible only against a valid licence from the DGFT. In the absence of such licence, the goods were liable to confiscation. The Court held that for confiscation on account of violation of the import policy, mens rea was not required. Once confiscation was justified, the quantum of redemption fine and penalty fell within the discretion of the authorities. The precedents relied upon by the importer were distinguished on the facts, as they involved either a bona fide dispute on classification or a matter remanded for further consideration.

Conclusion: The enhancement of redemption fine and penalty was upheld, and no substantial question of law arose in favour of the importer.

Ratio Decidendi: Where imported goods are restricted and brought in without the requisite licence, confiscation follows on violation of the import policy without proof of mens rea, and the quantum of redemption fine and penalty is ordinarily a matter of administrative discretion unless shown to be arbitrary or extraneous.

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