Redemption fine for confiscated excisable goods reduced where no intent to evade duty and bona fides were shown.

Confiscated excisable goods used captively without payment of duty remained liable to duty and confiscation, but the redemption fine had to reflect the absence of any material showing intent to evade duty. The tribunal treated the appellants' bona fides, captive use of the goods, and lack of mens rea as relevant factors in fixing the fine. On that basis, the redemption fine was reduced, while the confiscability of the goods was maintained.

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Issues: Whether the redemption fine imposed on confiscated excisable goods used captively without payment of duty warranted reduction in view of the absence of mens rea and the appellants' bona fides.

Analysis: The finding recorded was that there was no material on record to show any intention to evade duty and no mens rea on the part of the appellants. The goods were nevertheless liable to duty and hence confiscable, but the quantum of redemption fine had to be fixed by taking into account the bona fides of the appellants, the captive use of the goods, and the absence of evidence of deliberate evasion.

Conclusion: The redemption fine was reduced from Rs. 3.5 crores to Rs. 1,75,00,000, and the appeal was partly allowed.

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