Customs Act penalty under Section 125 held unsustainable because the provision authorises only redemption fine, not penalty.

Section 125 of the Customs Act, 1962 permits redemption fine in lieu of confiscation, but it does not authorise imposition of penalty. On that construction, the penalty component imposed under that provision was held unsustainable and was set aside. The appeal was allowed to that extent.

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Issues: Whether penalty could be sustained under Section 125 of the Customs Act, 1962.

Analysis: Section 125 provides only for redemption fine in lieu of confiscation and does not authorise imposition of penalty. The impugned order, insofar as it imposed penalty under that provision, was therefore unsustainable.

Conclusion: The penalty imposed under Section 125 of the Customs Act, 1962 was set aside and the appeal was allowed to that extent.

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