Redemption fine under Customs law cannot be imposed after unconditional release of goods without bond or confiscation availability.

Redemption fine under Section 125 of the Customs Act, 1962 cannot be sustained where imported goods were released unconditionally, without any bond or undertaking, and were no longer available for confiscation when proceedings were initiated. The court distinguished precedent on constructive availability of goods after release on bond, holding that the statutory basis for confiscation coupled with redemption fine was absent on these facts. Redemption fine was therefore held inapplicable, and the assessee succeeded on this issue.

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Issues: Whether redemption fine under Section 125 of the Customs Act, 1962 can be sustained when the imported goods were released unconditionally and were not available for confiscation.

Analysis: The goods had already been cleared without any bond or undertaking, and the show cause notice and confiscation proceedings were initiated after such clearance. The earlier Supreme Court ruling permitting redemption fine was distinguished on the ground that it concerned release of goods on execution of a bond, where the goods were treated as constructively available. On these facts, Section 125 was held inapplicable because the prerequisite conditions for sustaining confiscation coupled with redemption fine were absent.

Conclusion: Redemption fine could not be imposed, and the assessee succeeded on this issue.

Ratio Decidendi: Redemption fine in lieu of confiscation cannot be imposed under Section 125 of the Customs Act, 1962 where the goods were released unconditionally without bond or undertaking and are no longer available for confiscation.

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