Redemption fine under Customs law requires prior market-price determination before quantification; unsupported fine cannot stand.

Redemption fine under the Customs Act could not be sustained because the market price of the imported car had not first been determined as required by statute. The confiscation was treated as arising from contravention of the import conditions, but the order gave no basis for how the redemption fine was quantified and did not show compliance with the mandatory market-price determination. The confiscation order and redemption fine were therefore set aside, and the matter was remanded for de novo adjudication.

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Issues: Whether the confiscation order and redemption fine could be sustained when the market price of the imported car was not determined as required before fixing the fine.

Analysis: The import was treated as contrary to the conditions attached to the notification and as attracting confiscation under the Customs Act. However, for levy of redemption fine, the statute requires determination of the market price of the goods and only thereafter fixation of the fine on the prescribed basis. The order contained no finding showing how the redemption fine had been arrived at and did not establish compliance with the mandatory requirement for determining market price.

Conclusion: The confiscation order and redemption fine could not be sustained and the matter required fresh adjudication.

Final Conclusion: The appeal succeeded and the matter was remanded for de novo adjudication by the Commissioner.

Ratio Decidendi: Redemption fine under the Customs Act cannot be validly fixed unless the market price of the imported goods is first determined in accordance with the statutory requirement.

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