Redemption fine on confiscated imported machinery reduced where inferior quality justified limited interference

Imported machinery subject to a post-importation condition under the Import Policy AM 1985-88 was seized after being sold in breach of that condition and confiscated with redemption allowed on fine. The question was whether the redemption fine should be reduced, and the claimed inferior quality of the machines justified interference only to a limited extent. The redemption fine was reduced from Rs. 1,00,000 to Rs. 50,000, while the appeal was otherwise dismissed.

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Issues: Whether the redemption fine imposed on confiscated imported machinery was liable to be reduced.

Analysis: The machinery had been imported subject to a post-importation condition under the Import Policy AM 1985-88. The goods were subsequently sold, seized for breach of that condition, and confiscated with an option of redemption on payment of fine. In view of the claim that the machines were found to be of inferior quality, the quantum of redemption fine warranted interference to that limited extent.

Conclusion: The redemption fine was reduced from Rs. 1,00,000 to Rs. 50,000. The appeal was otherwise dismissed.

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