Redemption of confiscated goods by later importers upheld where duty and fine were paid and goods were freely importable.

Goods that were freely importable could be redeemed after confiscation by persons who later filed the Bills of Entry, paid duty and redemption fine, and asserted rights in the goods. Section 125 of the Customs Act, 1962 allows redemption of confiscated goods on payment of fine by the owner or a person in possession, so the later importers fell within that entitlement. The earlier attempt to import the goods in another entity's name, and any antecedent material suggesting duty evasion, was treated as irrelevant once the goods were cleared according to law. The Revenue's challenge to redemption therefore failed, and the reference request was not maintainable.

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Issues: Whether the goods, after confiscation, could be redeemed by the persons who subsequently filed the Bills of Entry and paid duty and redemption fine, and whether the prior attempt to import the goods in the name of another entity rendered such redemption impermissible.

Analysis: The goods were held to be freely importable, and once they were cleared according to law, the earlier attempt to import them and any antecedent material suggesting an attempt to evade customs duty was treated as irrelevant. Section 125 of the Customs Act, 1962 permits redemption of confiscated goods on payment of fine to the owner or to a person in possession. Since the three persons who ultimately filed the Bills of Entry paid the duty and redemption fine and claimed rights in the goods, they fell within the scope of persons entitled to redeem the goods. The confiscation order therefore did not warrant interference on this aspect, and the questions framed by the Revenue did not arise.

Conclusion: The Revenue's challenge to the redemption of the goods failed, and the request for reference was not maintainable.

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