In Brief
This Supreme Court judgment addresses the treatment of peas imported in violation of FTDR notifications restricting imports to 1.5 lakh MT annually. The Court held that goods imported without the requisite license and in excess of quantitative limits are 'prohibited goods' under Section 11 of the Customs Act, not merely 'restricted.' While Section 125(1) allows discretionary redemption of prohibited goods on payment of fine, the Court found such redemption improper here given the imports' violation of constitutionally valid policy protecting farmers. Approving absolute confiscation, the Court permitted re-export on redemption fine payment. The judgment also critiques the High Court's issuance of release orders while leaving the matter for appellate determination, creating inherent contradictions. It emphasizes that discretion must be exercised with regard to statutory purpose, policy considerations, and public interest, rejecting importers' equity claims where imports lacked bona fide basis.
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