Import licensing breach and sustained confiscation: no enhancement of redemption fine or penalty where amounts were adequate.

CESTAT Kolkata held that import of old and used worn clothing breached licensing requirements, and confiscation under Section 111(d) of the Customs Act, 1962 remained undisturbed. As confiscation was sustained and the appellate authority had already fixed redemption fine and penalty at levels found adequate on the facts, the Tribunal refused to enhance either amount. The Revenue's request for higher fine and penalty was rejected because the quantified amounts were considered sufficient to meet the ends of justice.

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Issues: Whether the Revenue was entitled to enhancement of the redemption fine and penalty imposed on import of old and used worn clothing.

Analysis: The import was held to be in breach of the licensing requirement, and confiscation under Section 111(d) of the Customs Act, 1962 was not disturbed. The Tribunal followed its earlier view that, once confiscation is sustained and the fine and penalty already imposed are found to be adequate in the circumstances, further enhancement is unwarranted. On the facts, the appellate authority had already reduced the fine and penalty to 10% and 5% respectively, and that level was considered sufficient to meet the ends of justice.

Conclusion: The Revenue's plea for enhancement of redemption fine and penalty was rejected and the amounts fixed by the appellate authority were upheld.

Ratio Decidendi: Where confiscation is sustained for non-compliance with import licensing requirements, redemption fine and penalty will not be enhanced if the appellate authority's quantified amounts are found sufficient to meet the ends of justice.

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