Illegal import without licence sustains confiscation, while redemption fine and penalty may be moderated on equitable grounds.

Import of jumbo rolls of medical X-ray films without the required licence was treated as contrary to the Import Policy, and the final judicial finding that the goods had been imported without authority of law was binding. On that basis, confiscation and penalty were sustained. At the same time, the Tribunal considered that the letters of credit had been opened during the subsistence of interim protection and noted the medical character of the goods, which justified moderation of the monetary consequences. The redemption fine and penalty were therefore reduced, while the finding of illegal import and confiscation remained undisturbed.

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Issues: (i) whether the import of jumbo rolls of medical X-ray films without the relevant licence was contrary to the Import Policy and liable to confiscation and penalty; (ii) whether the redemption fine and penalty required reduction in view of the interim order and surrounding circumstances.

Issue (i): whether the import of jumbo rolls of medical X-ray films without the relevant licence was contrary to the Import Policy and liable to confiscation and penalty.

Analysis: The import was held to be contrary to the Import Policy because the appellants did not possess the necessary licence for the goods in question, and the earlier interim protection granted by the High Court had later been modified and vacated in relation to the disputed import. The Tribunal treated the High Court's final finding that the goods had been imported without authority of law as binding, and therefore did not reopen the legality of the import on merits. On that basis, confiscation and liability to penalty followed.

Conclusion: The import was not permissible and confiscation with penalty was upheld against the assessee.

Issue (ii): whether the redemption fine and penalty required reduction in view of the interim order and surrounding circumstances.

Analysis: While sustaining confiscation, the Tribunal took account of the fact that the letters of credit had been opened during the currency of the interim order and before its modification, and also considered the medical nature of the goods. The Tribunal held that these circumstances justified moderation of the monetary consequences, and fixed the redemption fine at a reduced level and the penalty at a substantially lower figure than imposed by the adjudicating authority.

Conclusion: The redemption fine and penalty were reduced in favour of the assessee.

Final Conclusion: The appeals succeeded only to the extent of reduction of redemption fine and penalty, while the confiscation and the finding of illegal import were sustained.

Ratio Decidendi: A final judicial finding that goods were imported without licence in violation of the governing import policy is binding and sustains confiscation and penalty, though the quantum of redemption fine and penalty may be moderated on equitable considerations.

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