Undeclared imported goods are liable to confiscation, while bona fides may justify reducing penalty and redemption fine.

Undeclared imported goods are liable to confiscation under the Customs Act, 1962 even where the importer asserts bona fides, because omission from the bill of entry is sufficient to attract confiscation. The seven vacuum pumps found in excess of the five declared in the bill of entry were therefore liable to confiscation. However, the surrounding circumstances, including contemporaneous orders for different quantities, the supplier's acknowledgment of a shipping mistake, and the importer's status as a reputed importer, justified interference with the penal consequences. The penalty was set aside and the redemption fine was reduced, so the confiscation stood but the importer obtained partial relief on the quantum of penalty and fine.

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Issues: (i) Whether seven vacuum pumps not declared in the bill of entry were liable to confiscation under the Customs Act, 1962; (ii) Whether the penalty and redemption fine imposed on the importer called for interference.

Issue (i): Whether seven vacuum pumps not declared in the bill of entry were liable to confiscation under the Customs Act, 1962.

Analysis: The consignment covered only five pumps in the bill of entry, while examination disclosed twelve pumps. The excess seven pumps were therefore not declared, and liability to confiscation followed from the omission. The importer's bona fides did not remove the applicability of confiscation.

Conclusion: The seven undeclared pumps were liable to confiscation.

Issue (ii): Whether the penalty and redemption fine imposed on the importer called for interference.

Analysis: The existence of two contemporaneous orders for different quantities, the supplier's acknowledgment of the shipping mistake, and the importer's status as a reputed importer were relevant to the quantum of penalty and fine. On those facts, the penalty was unwarranted and the redemption fine required reduction.

Conclusion: The penalty was set aside and the redemption fine was reduced.

Final Conclusion: The order of confiscation was maintained, but the penal component was removed and the redemption fine was reduced, resulting in only partial relief to the importer.

Ratio Decidendi: Undeclared imported goods are liable to confiscation despite the importer's bona fides, though bona fides and surrounding circumstances may justify reduction or waiver of penalty and redemption fine.

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