Release of redeemed goods cannot be withheld merely because an appeal is pending without a stay.

Once redemption fine and penalty were paid under an operative adjudication order, customs authorities were bound to release the goods unless a stay had been obtained from the appellate forum. A pending departmental appeal did not, by itself, suspend the order or justify withholding release. The operative effect of the un-stayed order continued until modified or stayed, so refusal to release the redeemed goods was not justified.

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Issues: Whether the customs authorities were bound to release the redeemed goods once the redemption fine and penalty had been paid, in the absence of any stay of the adjudication order.

Analysis: The goods had been ordered to be redeemed on payment of fine and penalty, and those amounts had already been remitted. The department had filed an appeal against the adjudication order but had not obtained any stay from the appellate forum. In the absence of a stay, the adjudication order remained operative and the authorities were bound to act on it. The existence of a pending appeal by either side did not by itself justify withholding release of the goods.

Conclusion: The authorities were not justified in refusing release of the goods merely because the department had filed an appeal. Release had to follow unless a stay was obtained from the appellate authority.

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