Confiscation for non-conforming imported drugs upheld, but penalty failed without proof of conscious breach and fine was reduced.

Imported drugs that failed the prescribed Pharmacopoeia grade were held liable to confiscation under the applicable import restriction. Penalty was not sustained because the record did not show conscious breach or deliberate intention by the importers, and they were given the benefit of doubt on mens rea. Redemption fine was also found excessive in the absence of any likely profit on re-export and was reduced to a token amount. The liability of the goods to confiscation remained undisturbed, while relief was granted only on penalty and the quantum of redemption fine.

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Issues: Whether imported drugs found not to meet the prescribed Pharmacopoeia grade were liable to confiscation, and whether redemption fine and penalty were warranted or required reduction.

Analysis: The imported goods did not satisfy the required test grade and were therefore liable to confiscation under the import restriction applicable to drugs not meeting Pharmacopoeia standards. However, the record did not establish any specific knowledge or deliberate intention on the part of the importers to breach the prohibition. In such circumstances, the importers were entitled to the benefit of doubt on intention. Since no margin of profit would arise on re-export, the redemption fine was considered excessive and was reduced to a token amount.

Conclusion: Confiscation was upheld, the penalty was set aside, and the redemption fine was substantially reduced.

Final Conclusion: The appeal succeeded only to the extent of relief against penalty and the quantum of redemption fine, while the liability of the goods to confiscation remained undisturbed.

Ratio Decidendi: Where prohibited or non-conforming imported goods are liable to confiscation, penalty requires proof of conscious breach or intention, and in the absence of such intent the importer may be given the benefit of doubt; redemption fine must also be proportionate to the surrounding circumstances.

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