COMMNR. OF CUSTOMS, MUMBAI vs M/S. M. AMBALAL & CO.

The Supreme Court upheld the Tribunal's decision to set aside the original order of the adjudicating authority which imposed a duty of ₹2,20,50,125 under The Customs Act, 1962. The Court found that the respondent's inability to provide satisfactory explanations for the seized rough diamonds did not warrant the duty imposed, as the Tribunal had already confirmed a redemption fine and penalty under Section 111(d) and Section 112 of the Act. The Court emphasized that the duty should be determined based on the appropriate rate as per the Customs Act, thereby allowing the respondent to redeem the goods accordingly.