Redemption fine under Customs law may apply even when confiscated imported goods are permitted to be re-exported.

Imported goods found to be prohibited and liable to confiscation under the Customs Act may attract redemption fine under section 125 even where the importer seeks re-export. The statutory scheme treats the fine as the price for redeeming confiscation, and that option is available whenever confiscation is authorised; it is not confined to cases of home consumption clearance. Goods confiscated under section 111 vest in the Central Government under section 126 unless redeemed by payment of fine, and the absence of mens rea does not prevent confiscation. Re-export therefore does not exclude liability to pay redemption fine.

---

---

Issues: Whether redemption fine under section 125 of the Customs Act could be imposed when imported goods liable to confiscation were permitted to be re-exported.

Analysis: The goods were found to be prohibited for import and liable to confiscation under section 111 of the Customs Act. Once confiscation is authorised, section 125 permits the adjudicating authority to offer an option to pay fine in lieu of confiscation. The fine under that provision operates to redeem the confiscation order and is not confined to cases where goods are cleared for home consumption. Re-export pursuant to a request by the importer does not take the case outside the statutory scheme, because confiscated goods vest in the Central Government under section 126 unless redeemed by payment of the fine. The absence of mens rea does not prevent confiscation under section 111.

Conclusion: Redemption fine was lawfully imposable notwithstanding the re-export of the goods, and the challenge to the Tribunal's order failed.

Final Conclusion: The statutory option under section 125 applies whenever confiscation is authorised, and re-export does not nullify liability to pay redemption fine.

Ratio Decidendi: Where imported goods are confiscable under the Customs Act, redemption fine may be imposed under section 125 even if the goods are permitted to be re-exported, because the fine is the statutory price for redeeming confiscation and not a charge limited to home clearance.

---