Redemption fine under Customs law remains payable for non-absolute confiscation, while the existing penalty was upheld.

Where imported goods are confiscated but not absolutely confiscated, Section 125 of the Customs Act permits redemption on payment of fine, and prior payment of duty does not by itself bar that levy; the redemption fine was therefore held payable and fixed at Rs. 25,000. The penalty already imposed was not disturbed, as no sufficient ground was found to interfere with the adjudicating authority's determination, so the penalty of Rs. 50,000 remained in force. The appeal was thus allowed only to the limited extent of the redemption fine issue, with the penalty order otherwise upheld.

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Issues: (i) Whether redemption fine was payable when imported goods were held liable to confiscation but not absolutely confiscated; (ii) Whether the penalty already imposed required interference.

Issue (i): Whether redemption fine was payable when imported goods were held liable to confiscation but not absolutely confiscated.

Analysis: Section 125 of the Customs Act permits confiscation with an option to redeem the goods on payment of fine where the confiscation is not absolute. Mere payment of duty by the importer does not by itself exclude redemption fine, and the amount of such fine depends on the relevant circumstances.

Conclusion: Redemption fine was held to be imposable and was fixed at Rs. 25,000 in favour of Revenue.

Issue (ii): Whether the penalty already imposed required interference.

Analysis: The penalty of Rs. 50,000 had already been imposed by the adjudicating authority, and no sufficient reason was found to disturb that determination.

Conclusion: The penalty was maintained and no interference was made in favour of the assessee.

Final Conclusion: The appeal succeeded only to the extent of imposition of redemption fine, while the penalty order remained undisturbed, resulting in a partial allowance of the Revenue's appeal.

Ratio Decidendi: Where confiscated goods are not absolutely confiscated, redemption fine under Section 125 of the Customs Act is ordinarily payable, and the quantum of fine is to be determined on the facts of the case.

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