Redemption fine and penalty not enhanced where confiscation for lack of import licence was already sustained

Confiscation of old and used worn clothing for import without the requisite licence was upheld, so the only live issue was whether the redemption fine and penalty should be enhanced at the Revenue's instance. The Tribunal found no legal or factual infirmity in the appellate authority's reduction of the redemption fine to 10% and penalty to 5%, and held that the amounts already fixed were adequate in the circumstances. The challenge to further enhancement therefore failed, and the relief granted to the importer was sustained.

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Issues: Whether the redemption fine and penalty imposed on import of old and used worn clothing required enhancement at the instance of the Revenue.

Analysis: The imported goods were held liable to confiscation for want of the requisite import licence, and the Tribunal noted that confiscation under the customs law was not in dispute. The only controversy was the quantum of redemption fine and penalty. Relying on its earlier view, the Tribunal held that, in the circumstances of the case, the reduction already made to 10% redemption fine and 5% penalty was adequate. It found no infirmity in the appellate authority's assessment and saw no basis to enhance the amounts further.

Conclusion: The challenge to the quantum of redemption fine and penalty failed and the relief already granted to the assessee was sustained.

Ratio Decidendi: Where confiscation for lack of import licence is upheld, the quantum of redemption fine and penalty will not be interfered with unless the Revenue shows a legal or factual infirmity in the reduced amounts.

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