Redemption of confiscated imported goods requires duty payment, while enhancement of redemption fine needs supporting evidence.

When confiscated imported goods are redeemed under Section 125 of the Customs Act, duty is payable at the time of redemption, and an adjudicating authority's failure to require such duty is legally infirm. The request to enhance redemption fine was not accepted because there was no supporting evidence, such as market enquiry or other material, to show that the existing fine was inadequate or that the margin of profit had not been wiped out. The order was therefore disturbed only to the extent of requiring duty on redemption, while the redemption fine remained unchanged.

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Issues: (i) Whether duty was payable when confiscated imported goods were redeemed under Section 125 of the Customs Act, 1962; and (ii) whether the redemption fine imposed was liable to be enhanced.

Issue (i): Whether duty was payable when confiscated imported goods were redeemed under Section 125 of the Customs Act, 1962.

Analysis: Section 125 of the Customs Act, 1962 contemplates payment of duty at the time the option for redemption of confiscated goods is exercised. The adjudicating authority had omitted this requirement while allowing redemption of the imported cars on payment of fine and penalty alone.

Conclusion: The omission was held to be legally infirm, and the Revenue succeeded on this issue.

Issue (ii): Whether the redemption fine imposed was liable to be enhanced.

Analysis: The claim for enhancement was not supported by evidence showing that the margin of profit had not been wiped out by market enquiry or other material on record. In the absence of supporting evidence, interference with the quantified redemption fine was not warranted.

Conclusion: The request for enhancement of redemption fine was rejected.

Final Conclusion: The order was interfered with only to the extent of holding that duty was payable on redemption of the confiscated goods, while the redemption fine was left undisturbed.

Ratio Decidendi: Where confiscated goods are allowed to be redeemed under Section 125 of the Customs Act, 1962, duty must be paid at the time of redemption, but enhancement of redemption fine requires evidentiary support showing that the existing fine is inadequate.

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