Confiscation of an imported vessel before customs clearance sustained, with token fine and penalty upheld for lack of grounds to reduce leniency.

An imported vessel broken before customs clearance was liable to confiscation under Section 111(j) of the Customs Act, because subsequent payment of duty and interest did not cure the earlier irregularity. The Tribunal accepted that the Commissioner had considered the relevant circumstances and found that only a token redemption fine and penalty had been imposed. On that basis, the confiscation, fine, and penalty were upheld, and no further reduction on grounds of leniency was justified.

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Issues: Whether confiscation of the imported ship under Section 111(j) of the Customs Act was justified and whether the redemption fine and penalty imposed called for reduction on grounds of leniency.

Analysis: The importer had started breaking the ship before clearance, and the subsequent payment of duty and interest did not undo the irregularity already found. The Tribunal held that confiscation was correctly made under Section 111(j) and that the Commissioner had taken into account all relevant circumstances while imposing only a token fine and penalty.

Conclusion: The confiscation and the ancillary fine and penalty were upheld, and no further leniency was warranted.

Ratio Decidendi: Where an imported vessel is broken before clearance, confiscation under Section 111(j) is sustainable, and modest fine and penalty need not be interfered with absent sufficient grounds for further leniency.

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