Per Shri T.P. Nambiar :

This appeal is directed against the orders passed by the adjudicating authority in terms of which he confiscated 50,088.18 metres of the fabrics allowing the appellant to redeem the same on payment of a redemption fine of Rs. 2.00 lacs. He ordered release of 1,16,800 metres of the said fabrics valued at Rs. 28,03,200 to the appellant on payment of appropriate duties of customs and a penalty of Rs. 20 lacs was imposed on the appellant u/s 112 of the Customs Act.

2. In this case, the facts are that M/s. Praga Tools Ltd. (PTL), a state govt. undertaking imported 100% polyester fabrics through Hyderabad and clearances of the said fabrics was sought by them with the benefits of notification no. 159/90-Cus. dated 30.3.90. During the course of the investigation with respect to licensing angle and the valuation angle, it was found out that a commercial quantity of 50,088.18 was imported by the above said firm. It is this quantity which was confiscated in the impugned order and the confiscability of the same quantity is not seriously contested before us. Only the quantum of redemption fine of Rs. 2.00 lacs and the penalty of Rs. 20 lacs is challenged before us. Th