Objective basis for redemption fine and penalty required in confiscation matters; inadequate reasoning led to remand for fresh determination.

Redemption fine and penalty in confiscation matters must be fixed on objective, relevant criteria, including the market value of the goods, the likely gain from the unauthorised import, and the need for deterrence. Where the adjudication order does not disclose an adequate basis or market inquiry for the amounts imposed, and the record is insufficient for the Tribunal to determine the correct figures itself, the fixation cannot be sustained. The matter was therefore remanded to the original authority for fresh decision after personal hearing.

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Issues: Whether the redemption fine and penalty imposed on confiscated second-hand diesel engines were fixed on a proper basis and, if not, whether the matter should be remanded for fresh consideration.

Analysis: The imported goods were held confiscable and the enhanced value was not under challenge. The only live question was the quantum of redemption fine and penalty. The order found that such amounts must be fixed on objective and relevant parameters, taking into account the market value of the goods, the likely gain from the unauthorised import, and the need to prevent undue advantage and deter similar violations. As no adequate basis or market inquiry was shown in the impugned order, and no sufficient facts were before the Tribunal to itself determine the correct amounts, the adjudication was found to be unsatisfactory.

Conclusion: The fixation of redemption fine and penalty was not upheld, and the matter was remanded to the original authority for fresh decision after personal hearing.

Final Conclusion: The appeals succeeded to the extent that the impugned orders were set aside and the matter was sent back for fresh adjudication.

Ratio Decidendi: Redemption fine and penalty in confiscation matters must be determined on objective, relevant criteria reflecting the importer's potential gain and the need for deterrence, and may be remanded for fresh determination where the basis is not adequately disclosed.

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