Redemption fine may be reduced where prolonged customs detention causes demurrage, storage loss, and capital blockage.

Redemption fine on confiscated imported consumer goods was moderated because the goods had remained under customs detention for a prolonged period, causing storage loss, capital blockage and demurrage charges. The fine was assessed in light of the enhanced value of the goods and the prejudice caused by detention, leading to partial relief. The redemption fine was reduced from Rs. 9.00 lakhs to Rs. 7.00 lakhs, while confiscation and the remaining adjudicatory findings were left undisturbed.

---

---

Issues: Whether the redemption fine imposed on confiscated imported consumer goods required reduction.

Analysis: The imported goods had remained under customs detention for a considerable period, and the importer relied upon storage-related loss, tying up of capital, and demurrage charges. The fine was assessed against the background of the enhanced value of the goods and the extent of prejudice caused by the detention.

Conclusion: The redemption fine was reduced from Rs. 9.00 lakhs to Rs. 7.00 lakhs.

Final Conclusion: The appeal succeeded only to the extent of a partial reduction in redemption fine, while the confiscation and the remaining adjudicatory findings were left undisturbed.

Ratio Decidendi: Redemption fine may be moderated where prolonged detention of imported goods and attendant demurrage or storage-related losses justify a lesser quantum.

---