Conditional import restrictions can render gold prohibited goods, supporting absolute confiscation without redemption where concealment is shown.

Import of gold under Notification No. 31/2003-Cus. is available only to an eligible passenger who has stayed abroad for at least six months and satisfies the prescribed conditions; failure to meet those conditions means the goods are treated as prohibited for customs purposes under Section 2(33) of the Customs Act, 1962. Where the import is made in concealment and in breach of the import conditions, the adjudicating authority may order absolute confiscation and is not obliged to offer redemption under Section 125. The Tribunal's direction to consider redemption was therefore unsustainable.

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Issues: Whether gold brought into India by a passenger who had not completed the prescribed period of stay abroad as an eligible passenger could be treated as prohibited goods, and whether the Tribunal was justified in directing the Commissioner to grant an option of redemption under Section 125 of the Customs Act, 1962.

Analysis: The exemption under Notification No. 31/2003-Cus. dated 01-03-2003 was available only to an eligible passenger, namely one coming to India after not less than six months of stay abroad, subject to the prescribed conditions. On the facts found, the passenger had returned after a stay of less than six months and therefore did not satisfy the conditions for the concessional import of gold. In light of Section 2(33) of the Customs Act, 1962 and the width of the expression "prohibited goods" as explained by the governing principle that even conditional restrictions, if not complied with, amount to prohibition, the imported gold was treated as prohibited goods. Since the goods were imported with concealment and in violation of the conditions of import, the Commissioner was entitled to order absolute confiscation and was not bound to grant redemption. The Tribunal's direction to consider redemption was therefore unsustainable.

Conclusion: The question was answered against the assessee and in favour of the Revenue. The Tribunal was not right in remanding the matter with a direction to invoke Section 125 of the Customs Act, 1962 for redemption of the goods.

Final Conclusion: Absolute confiscation of the goods was upheld and the order of remand with a direction to permit redemption was set aside.

Ratio Decidendi: Where import of goods is permitted only subject to statutory or notification-based conditions, non-compliance with those conditions renders the goods prohibited for customs purposes, and in a case of deliberate concealment the adjudicating authority may refuse redemption and order absolute confiscation.

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