Redemption fine must be proportionate in confiscation cases; Tribunal reduced the fine for used digital devices while sustaining duty and penalty.

Imports of old and used digital multifunctioning devices were treated as liable to confiscation for breach of the Foreign Trade Policy and the Customs Act, and the Tribunal held that redemption fine must be proportionate, justified on the facts, and aimed at neutralising any profit from the contravention. Applying that approach and considering consistency with past cases, it reduced the redemption fine to about 10% of the goods' value. The duty demand and penalty were sustained.

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Issues: Whether the redemption fine imposed on import of old and used digital multifunctioning devices was excessive and required reduction, while the duty demand and penalty could be sustained.

Analysis: The imports were treated as liable to confiscation for contravention of the Foreign Trade Policy and the Customs Act, and the dispute before the Tribunal centered on the quantum of redemption fine. The Tribunal reiterated that redemption fine is intended to neutralize the profit that may arise from the contravention and that both redemption fine and penalty, though discretionary, must remain proportionate and justifiable in the facts of the case. Consistency with past cases was also treated as relevant in fixing the amount of fine.

Conclusion: The redemption fine was reduced to about 10% of the value of the goods. The duty demand and penalty were upheld.

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