Duty liability on redeemed confiscated goods remains payable in addition to redemption fine under customs law.

Where confiscated goods are redeemed on payment of fine, duty remains payable in addition to the redemption fine under the Customs Act. The provision was applied to hold that redemption does not extinguish the duty liability attached to the goods, and the Revenue's contention was accepted. Liability to pay duty on the redeemed goods was therefore upheld, and the appellant was directed to deposit the duty determined within the stipulated time.

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Issues: Whether goods redeemed after confiscation under Section 125 of the Customs Act, 1962 are liable to duty under Section 125(2) of the Customs Act, 1962.

Analysis: The original adjudication confiscated the foreign-origin goods and permitted redemption on payment of fine. The appellant accepted that order. The dispute before the appellate forum was confined to the Revenue's contention that, once redemption is allowed, duty on the goods also becomes payable under Section 125(2). The provision was applied to hold that the liability to pay duty attaches in addition to the redemption fine.

Conclusion: The liability to pay duty on the redeemed goods was upheld, in favour of the Revenue.

Final Conclusion: The appellant was directed to deposit the duty determined on the confiscated goods within the stipulated time, and the appeal was left to be dismissed upon non-compliance.

Ratio Decidendi: Where confiscated goods are redeemed on payment of fine, Section 125(2) of the Customs Act, 1962 fastens duty liability on the goods in addition to the redemption fine.

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