Proportionality in customs penalty: redemption fine sustained, but personal penalty reduced for a register maintenance lapse.

Non-accountal of gold ornaments in a dealer's register was treated as an accounting lapse rather than evidence of clandestine disposal. On that basis, the confiscation-related redemption fine was maintained because the breach justified forfeiture, but the personal penalty was found excessive in relation to the nature of the default and was reduced. The matter turned on proportionality between the established lapse and the punitive consequence imposed.

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Issues: Whether, in the circumstances of the case, the redemption fine and personal penalty imposed for non-accountal of gold ornaments in the dealer's register were excessive.

Analysis: The appellant was found in possession of unaccounted gold ornaments and the confiscation was based on failure to keep the register up to date. There was no finding of clandestine disposal of the gold, and the default was treated as a lapse of an accounting nature. On that basis, the forfeiture of the redemption fine was maintained, but the personal penalty was considered disproportionate to the nature of the breach.

Conclusion: The redemption fine was upheld, but the personal penalty was reduced from Rs. 10,000 to Rs. 2,000.

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