Redemption fine for confiscated primary gold upheld where confiscation was justified, while the penalty remained undisturbed.

Unauthorised acquisition and possession of primary gold justified confiscation, but the prevailing departmental practice of allowing redemption on payment of fine was applied, so the gold was directed to be released on payment of redemption fine while the confiscation itself was maintained. The penalty imposed under the confiscation order was not interfered with because no appealable or factual basis was shown to disturb it and the issue was not pressed on merits.

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Issues: (i) Whether the absolute confiscation of the seized primary gold should be sustained or the gold should be released on payment of redemption fine; (ii) Whether the penalty imposed on the appellants was liable to be interfered with.

Issue (i): Whether the absolute confiscation of the seized primary gold should be sustained or the gold should be released on payment of redemption fine.

Analysis: The gold was admittedly unauthorisedly acquired and possessed, so confiscation was maintainable. However, the prevailing departmental practice in such cases was to permit release of confiscated gold on payment of fine in lieu of absolute confiscation. That approach was applied to the facts of the case.

Conclusion: The confiscation was upheld, but release of the gold on payment of redemption fine of Rs. 25,000/- was ordered, in favour of the appellants to that extent.

Issue (ii): Whether the penalty imposed on the appellants was liable to be interfered with.

Analysis: There was no appealable or factual basis shown to disturb the penalty imposed under the confiscation order, and the penalty aspect was not pressed on merits.

Conclusion: The penalty was upheld, against the appellants.

Final Conclusion: The confiscation order was maintained, but the gold was directed to be released on payment of redemption fine, while the penalty remained undisturbed.

Ratio Decidendi: Even where confiscation of gold is justified, the authority may permit redemption on payment of fine where departmental practice and the surrounding circumstances support such relief.

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