Margin of profit for redemption fine must include pre-sale import expenses and cannot be fixed by a rigid formula.

Margin of profit for fixing redemption fine in import confiscation matters must reflect all valid pre-sale expenses, including clearing, loading, transportation, unloading and godown charges. The appellate authority was justified in directing a fresh determination because the expression has no statutory definition in the Customs Act and cannot be applied through a rigid formula or arbitrary ad hoc deduction. The required assessment should account for the expenses incurred before the goods enter the stream of sale, ensuring a realistic profit computation. The Revenue's objection was rejected and the direction to reconsider the margin of profit on that basis was upheld.

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Issues: Whether, while determining the margin of profit for fixing redemption fine in an import confiscation matter, the authority was required to take into account the importer's expenses such as clearing, loading, transportation, unloading and godown charges.

Analysis: The appellate authority's direction to reassess the margin of profit by considering the expenses incurred before the goods were brought into the stream of sale was held to be proper. Margin of profit cannot be computed on a rigid formula and must reflect all valid expenses incurred by a trader or importer before sale. Since the expression has no statutory definition in the Customs Act, the authority was justified in directing a careful fresh determination rather than accepting an arbitrary ad hoc deduction.

Conclusion: The objection of the Revenue was rejected, and the direction to consider the relevant expenses while recalculating the margin of profit was upheld.

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