Redemption of restricted imported goods permitted despite confiscation, with release allowed on duty, fine, and penalty.

Imported used Digital Multifunctional Machines were treated as restricted rather than prohibited goods. Confiscation was sustained under the Customs Act and foreign trade framework, but absolute confiscation was found unnecessary because Section 125 of the Customs Act permits redemption of restricted goods. The goods were therefore directed to be released on payment of enhanced customs duty, redemption fine, and penalty, with the precedents cited supporting redemption where no material showed that the goods were prohibited and no contrary basis existed on margin of profit.

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Issues: Whether the imported used Digital Multifunctional Machines were liable to absolute confiscation or were redeemable on payment of fine and penalty, and what relief should follow on re-determination of value.

Analysis: The imported goods were treated as restricted rather than prohibited goods. In light of the governing foreign trade framework and the Customs Act, confiscation was sustainable, but absolute confiscation was not warranted. The power under Section 125 of the Customs Act, 1962 was applicable to allow redemption of restricted goods, and the release could be ordered on payment of customs duty on the enhanced value together with redemption fine and penalty. The precedents relied upon supported redemption in place of absolute confiscation where the goods were not prohibited and no contrary material was shown on margin of profit.

Conclusion: The order of confiscation was upheld, but the goods were directed to be released on payment of enhanced customs duty, redemption fine, and penalty in the quantified amounts specified in the order.

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