Redemption fine must rest on evidence and market value limits, not arbitrary fixation in customs confiscation matters.

Redemption fine under Section 125 of the Customs Act, 1962 must be fixed on relevant evidence and rational considerations within the statutory ceiling of the market price of the confiscated goods less duty chargeable. Because confiscation is penal and quasi-criminal in character, the fine cannot rest on arbitrary assessment or mere assertion by the adjudicating authority. Where the market price at the time and place of importation is not ascertained and no evidentiary basis supports the amount fixed, the quantification is liable to be set aside and re-determined de novo on remand.

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Issues: (i) Whether the redemption fine imposed in lieu of confiscation was liable to be interfered with and re-determined.

Issue (i): Whether the redemption fine imposed in lieu of confiscation was liable to be interfered with and re-determined.

Analysis: The power under Section 125 of the Customs Act, 1962 is discretionary, but that discretion is not unfettered. The fine must be fixed within the statutory ceiling of the market price of the confiscated goods less the duty chargeable, and the process of fixation must rest on relevant material and rational considerations. Confiscation proceedings are penal in nature and quasi-criminal in character, so the determination of fine cannot be arbitrary or based on mere ipse dixit. In the present case, there was no ascertainment of the market price at the time and place of importation and no evidentiary basis for the amount fixed by the adjudicating authority.

Conclusion: The redemption fine was rightly set aside and required de novo re-determination by the Collector on remand.

Final Conclusion: The appeal succeeded only to the extent of the redemption fine, which was remitted for fresh quantification in accordance with law.

Ratio Decidendi: Redemption fine under Section 125 of the Customs Act, 1962 must be determined on relevant evidence and rational principles within the statutory ceiling, and an arbitrary fixation without ascertainment of market price at the time and place of import is liable to be set aside.

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