Confiscation despite provisional release, with redemption fine and penalty reduced for disproportionate monetary burden

Provisional release of seized goods on bond and bank guarantee does not prevent confiscation where excess non-duty-paid goods are found carried in a truck; the security stands in place of the goods for recovery of adjudicated dues. The commentary also notes that redemption fine and penalty may be reduced when they are excessive in relation to the duty involved and the overall facts, even though confiscability is maintained. The operative effect is that confiscation of the goods and truck remains legally supportable, while monetary consequences can be scaled down for proportionality.

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Issues: (i) whether the excess stock of twisted bars found in the truck was liable to confiscation along with the truck, and (ii) whether the redemption fine and penalty imposed were excessive and required reduction.

Issue (i): whether the excess stock of twisted bars found in the truck was liable to confiscation along with the truck.

Analysis: The shifting stand taken by the appellant did not displace the finding that excess non-duty-paid twisted bars were carried in the truck. The liability to confiscation was also not avoided by the provisional release of the goods, since the bond and bank guarantee stood in place of the goods for recovery of any adjudicated dues.

Conclusion: The confiscation of the goods and the truck was upheld.

Issue (ii): whether the redemption fine and penalty imposed were excessive and required reduction.

Analysis: Having regard to the overall facts and the amount of duty involved, the monetary consequences imposed were considered excessive and were reduced.

Conclusion: The penalty was reduced to Rs. 5,000/-, the redemption fine in lieu of confiscation of the goods was reduced to Rs. 5,000/-, and the redemption fine in lieu of confiscation of the truck was reduced to Rs. 2,500/-.

Final Conclusion: The finding of confiscability was maintained, but the monetary liabilities were substantially scaled down, resulting in only partial relief to the appellant.

Ratio Decidendi: Provisional release of seized goods through bond and bank guarantee does not bar confiscation, and redemption fine and penalty may be reduced where they are disproportionate to the duty involved and the overall facts of the case.

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