Redemption fine reduced for delayed adjudication after inflated export value led to lawful confiscation; penalty remained unchanged.

Inflated export value used to secure excess drawback attracted confiscation under the Customs Act, and the confiscation was held lawful because the offence was established. The only relief granted was on the quantum of redemption fine: the adjudication delay, coupled with the exporter's financial loss and inability to find an alternative buyer, justified reduction of the fine on commercial considerations. The penalty was left unchanged, so the adjustment was confined to redemption fine alone.

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Issues: Whether the redemption fine imposed on confiscation of export goods for inflated declared value should be reduced on account of delay in adjudication and resultant financial loss, while leaving the penalty undisturbed.

Analysis: The export value had been inflated to secure excessive drawback, attracting confiscation under Section 113(1) of the Customs Act, 1962. The offence was established and confiscation was held to be legal and proper. However, the goods had been exported for the first time in September 2000 and the proceedings were concluded after a substantial delay, during which the exporter was found to have suffered financial loss and was unable to secure an alternate buyer. The relief sought was confined to the quantum of redemption fine on commercial considerations.

Conclusion: The redemption fine was reduced from Rs. 8,50,000 to Rs. 4,00,000, with no reduction in penalty. The appeal succeeded only to that extent.

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