Smuggled gold and redemption under customs law denied where a foreign national failed eligibility conditions and concealed undeclared baggage goods.

A foreign national was held ineligible to import gold in baggage because the Foreign Trade (Exemption from application of rules in certain cases) Order, 1993 limited such import to passengers of Indian origin or passengers holding a valid passport under the Passport Act, 1967. As the gold bars were concealed and not declared at the green channel, the conduct was treated as an attempt to smuggle prohibited goods. On that basis, confiscation under the Customs Act, 1962 was justified, and redemption under Section 125 was refused. The challenge to absolute confiscation and penalty therefore failed, and the seized gold was not releasable on redemption.

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Issues: Whether the petitioner was entitled to redemption of the gold bars under Section 125 of the Customs Act, 1962, and whether absolute confiscation and penalty for smuggling were justified.

Analysis: The petitioner was a foreign national and did not satisfy the eligibility conditions under the Foreign Trade (Exemption from application of rules in certain cases) Order, 1993, which restricted import of gold in baggage to passengers of Indian origin or passengers holding a valid passport issued under the Passport Act, 1967. The gold was concealed, not declared at the green channel, and the conduct amounted to an attempt to smuggle prohibited goods. In these circumstances, the goods were liable to confiscation under the Customs Act, 1962, and the plea for redemption under Section 125 could not be accepted.

Conclusion: The challenge to absolute confiscation and penalty failed, and the petitioner was not entitled to redemption of the seized gold bars.

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