Redemption in lieu of confiscation must be considered before sustaining customs confiscation and penalty.

Where confiscation is ordered, the adjudicating authority must consciously consider the statutory discretion under Section 125 of the Customs Act to permit redemption in lieu of confiscation after hearing the affected party. The text notes that confiscation and penalty were sustained on the basis of a forged certificate of origin and breach of Sandalwood Transit Rules, but the authority failed to address redemption at all, creating a material omission. The matter was therefore remanded for fresh consideration of the redemption request, and the penalty was also directed to be reconsidered in light of the surrounding circumstances.

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Issues: Whether the order of absolute confiscation and penalty required interference for non-consideration of the plea for redemption under Section 125 of the Customs Act.

Analysis: The confiscation and penalty were sustained on the basis of a forged certificate of origin and violation of the Sandalwood Transit Rules, but the adjudicating authority did not advert to the statutory discretion under Section 125 of the Customs Act to consider redemption of the confiscated goods. The governing principle is that where confiscation is ordered, the authority must address whether redemption in lieu of confiscation should be granted on the facts of the case and after hearing the importer or exporter. Since that issue was not considered at all, the order suffered from a material omission. The plea regarding reduction of penalty also required reconsideration in light of the surrounding circumstances.

Conclusion: The matter was remanded to the Commissioner for fresh consideration of the request for redemption and for reconsideration of penalty.

Ratio Decidendi: When confiscation is ordered, the statutory discretion to allow redemption under Section 125 of the Customs Act must be consciously considered and decided after hearing the affected party.

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