How can GOD Almighty be absolutely Just and Merciful at the same time?  How is justice served when Mercy and Forgiveness of sins are applied to some people and not others?

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While the question seems to be impossible to answer on the surface, but the answer to it is actually quite simple and it is spelled out in the Noble Quran.

To simplify the answer, I'd like to take the scenario of sexual sinning and concentrate on it.  We have a scenario of two men living in the West where they all, on separate occasions, had sex with one prostitute.  One of them was forgiven by Allah Almighty while the other got punished for the sin.  How is that fair and just when GOD Almighty's Mercy was applied to one person and not to the other, and when GOD Almighty punished one person and didn't punish the other?  Let look at the following Noble Verses from the Noble Quran:

"Then shall anyone who has done an atom's weight of good, see it!  And anyone who has done an atom's weight of evil, shall see it.  (The Noble Quran, 99:7-8)"

"There is no moving creature on earth but its sustenance dependeth on God: He knoweth the time and place of its definite abode and its temporary deposit: All is in a clear Record.  (The Noble Quran, 11:6)"

"We have enjoined on man kindness to his parents: In pain did his mother bear him, and in pain did she give him birth. The carrying of the (child) to his weaning is (a period of) thirty months. At length, when he reaches the age of full strength and attains forty years, he says, 'O my Lord! Grant me that I may be grateful for Thy favour which Thou has bestowed upon me, and upon both my parents, and that I may work righteousness such as Thou mayest approve; and be gracious to me in my issue. Truly have I turned to Thee and truly do I bow (to Thee) in Islam.'  (The Noble Quran, 46:15)"

"Say to the Unbelievers, if (now) they desist (from unbelief), their past would be forgiven for them; but if they persist, the punishment of those before them is already (a matter of warning for them).  (The Noble Quran, 8:38)"

"The Lord of the heavens and the earth, and all between,- Exalted in Might, able to enforce His Will, forgiving again and again.   (The Noble Quran, 38:66)"

"Those who avoid great sins and shameful deeds, only (falling into) small faults,- verily thy Lord is ample in forgiveness. He knows you well when He brings you out of the earth, And when ye are hidden in your mothers' wombs. Therefore justify not yourselves: He knows best who it is that guards against evil.  (The Noble Quran, 53:32)"

In these Noble Verses we see the following:

1-  Allah Almighty records everything that His creations do, and will bring it to their attention on the Day of Judgement.

2-  Allah Almighty recognizes that as the person grows up, he/she learns.  His example of the age of 40 in Noble Verse 46:15 clearly proves this.

3-  Allah Almighty's Mercy and Forgiveness are vast and He always Forgives His creation.

With these points established from the Noble Quran, we can now clearly see how Allah Almighty's Mercy and Justice do not contradict each others in anyway.  In the case of sexual sinning above, while it is true that the sin itself was committed by the two men and with the same woman, but the conditions that surrounded both men and effecting their upbringing, and their intentions and faith and fear in Allah Almighty, and their age differences and mentality, and other conditions that I can't think of right now are most definitely different between them, because each person is unique.  A pornography promoter, for instance, is not the same as the victim who falls prey into the sexual sinning and lust through seeing it on the internet, VHS or DVD.  So the bottom line is it is not the sin itself that always matters to Allah Almighty.   It is rather the intentions of the person and the situation that he/she is in that caused him/her to sin it.  And equally important, the age that they were in when they committed the sin also matters.  A 13-year old teenager committing fornication is not the same as a 60-year old committing it!  While the sin is the same, but the mentality and maturity between the 13-year old and the 60-year old is quite different!  Allah Almighty would most likely forgive the 13-year old boy while He may not forgive the 60-year old.

Also, even if the two sinners were on the same age (say 30 years old), still one of them might be forgiven while the other might not.  A man committing a sin in a very conservative and anti-sex society such as the Orthodox Muslim ones is different from one who lives in California or South Beach Florida where the girls always look sexually tempting and lustful.  Women in Orthodox Muslim societies don't look sexual at all.  Sexual temptation does not even exist in these societies and believe it or not, teenage boys may not even masturbate because the urge is just not there!  The case is not the same in whoredom societies where Christians mostly live such as in the US and Europe, where they pride themselves with sex and lust, and sin is their way of life.