In Brief
The Supreme Court upheld absolute confiscation of yellow peas and pulses imported in violation of quantitative restrictions set by the Foreign Trade (Development and Regulation) Act, 1992. The importers, relying on interim orders from High Courts, imported commodities exceeding permitted quotas and without necessary licenses. The Court clarified that such imports constitute 'prohibited goods' under the Customs Act, not merely 'restricted goods.' While discretion exists under Section 125 of the Customs Act to release prohibited goods on payment of redemption fine, the Court held that this discretion must be exercised based on relevant considerations, including the statutory purpose of protecting farmers and the domestic agricultural market. Since importers acted without bona fide belief and for personal profit, absolute confiscation was the proper exercise of discretion, though re-export was permitted as an alternative. The Court also criticized interim orders that undermined trade policy enforcement.
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