Proportionality of redemption fine and penalty in admitted import contravention led to a reduction of fiscal sanctions.

Admitted alteration of the bill of lading and restricted import of second-hand machinery justified confiscation, but the Tribunal examined whether the redemption fine and penalty were proportionate. It considered the nature of the goods, the import circumstances, and the plea for leniency, while leaving the finding of contravention undisturbed. The redemption fine was reduced from Rs. 30 lakhs to Rs. 20 lakhs, and the penalty from Rs. 5 lakhs to Rs. 2 lakhs, showing interference only with the quantum of fiscal sanctions where the original amounts were excessive.

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Issues: Quantum of redemption fine and penalty in a case of admitted alteration of the bill of lading and restricted import of second-hand machinery.

Analysis: The importers accepted the material misconduct, so the controversy was confined to the appropriate quantum of fiscal consequences. The Tribunal considered the nature of the goods, the circumstances of import, and the plea for leniency in fixing the monetary sanctions. While the finding of contravention was not disturbed, the amounts of fine and penalty were examined for proportionality.

Conclusion: The redemption fine was reduced from Rs. 30 lakhs to Rs. 20 lakhs and the penalty from Rs. 5 lakhs to Rs. 2 lakhs.

Final Conclusion: The appeal succeeded only to the extent of reduction in fine and penalty, and was otherwise rejected.

Ratio Decidendi: Where the contravention is admitted, the Tribunal may interfere only with the quantum of redemption fine and penalty if the original amounts are considered excessive.

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