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Issues: (i) Whether the redemption fine imposed on confiscation of the imported goods warranted reduction. (ii) Whether the personal penalty imposed on the importer called for interference.
Issue (i): Whether the redemption fine imposed on confiscation of the imported goods warranted reduction.
Analysis: The imported goods were found to be old and used and the importer did not dispute that such goods required a licence for import. Confiscation was therefore justified. However, the order did not discuss the normal margin of profit for such goods, while demurrage had been referred to. Taking the entire facts into account, the fine was considered excessive to that extent.
Conclusion: The redemption fine was reduced from Rs. 2.50 lakh to Rs. 1.75 lakh in favour of the assessee.
Issue (ii): Whether the personal penalty imposed on the importer called for interference.
Analysis: The penalty amount was examined in the light of the admitted unauthorised import and the circumstances noted in the order. No basis was found to disturb the penalty.
Conclusion: The personal penalty of Rs. 25,000 was upheld against the assessee.
Final Conclusion: The confiscation was sustained, the redemption fine was reduced, and the personal penalty was maintained.
Ratio Decidendi: Where imported goods are admittedly liable to confiscation for want of the required licence, the redemption fine may still be reduced on a proper assessment of the surrounding commercial facts, while a justified penalty need not be interfered with.
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