Penalty under section 112(b) requires proof that a person dealt...

Penalty under section 112(b) requires proof that a person dealt in goods liable to confiscation and knew or had reason to believe that the goods were confiscable. An unaddressed retraction and unverified allegations concerning other cigarette owners or the landlord could not establish those requirements, particularly where an invoice supported the claim that certain cigarettes were Indian-made; the penalty was set aside. Foreign-origin rice cookers and ceramic stoves were released on payment of redemption fine because neither confiscation nor release had been properly substantiated and their valuation rested on assumptions.