Customs confiscation of undeclared gold does not automatically make it prohibited; redemption must ordinarily be allowed.

Gold carried without declaration and intended for concealment may be confiscable under customs law, but it is not treated as prohibited goods unless expressly notified or otherwise barred by law. A regulatory breach or attempted smuggling does not by itself justify absolute confiscation. Where confiscated gold is not prohibited, the customs framework ordinarily requires an option of redemption on payment of duty, redemption fine, and penalty. Concealment remains relevant to the level of fine and penalty, but not to denial of redemption altogether. The absolute confiscation order was therefore modified to permit release on redemption terms while preserving the confiscatory and penal consequences.

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Issues: (i) Whether gold carried by the applicant could be treated as prohibited goods so as to justify absolute confiscation, and (ii) whether an option of redemption under the Customs Act, 1962 was required to be granted.

Issue (i): Whether gold carried by the applicant could be treated as prohibited goods so as to justify absolute confiscation.

Analysis: The applicant had not declared the gold bars on arrival and had attempted to smuggle them by concealment, making the goods liable to confiscation for violation of customs law. However, goods do not become prohibited merely because they are imported without declaration or with intent to evade duty. Prohibited goods are those specifically notified or otherwise expressly barred by law, while regulatory violations only attract confiscation and other consequences. The notification relied upon by the lower authority governed concessional duty eligibility and did not make gold a prohibited item.

Conclusion: Gold was not a prohibited good, and absolute confiscation on that basis was unsustainable.

Issue (ii): Whether an option of redemption under the Customs Act, 1962 was required to be granted.

Analysis: Once the gold was held to be confiscable but not prohibited, the statutory scheme required an option of redemption on payment of duty, fine, and penalty. The existence of concealment and attempted smuggling was relevant to the quantum of fine and penalty, not to denial of redemption altogether. The general view applied was that confiscated gold, if not prohibited, must ordinarily be redeemable under the customs law.

Conclusion: The applicant was entitled to redeem the confiscated gold on payment of customs duty, redemption fine, and the penalty already imposed.

Final Conclusion: The order of absolute confiscation was modified by directing release of the gold on redemption terms, while maintaining the confiscatory and penal consequences otherwise found justified.

Ratio Decidendi: Goods imported in violation of customs requirements may be liable to confiscation, but they do not become prohibited goods unless expressly so notified or barred by law, and in such cases redemption must ordinarily be permitted under the confiscation provisions.

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