Statutory option under Section 125(3) void if redemption fine unpaid within 120 days; re-export refused, fine refunded.

The petition challenged entitlement to re-export and refund after late payment of a redemption fine and penalty where an option to redeem was granted under Section 125 but conditioned on payment within 120 days. The court applied the statutory rule that the redemption option lapses if unpaid within the 120 day period unless an appeal is pending; the petitioner filed no appeal and paid only after about one year, so the option could not be revived. Consequently re-export directions were refused, the petition was dismissed, and the redemption fine (not the penalty) was directed to be refunded.

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Issues: Whether the petitioner, having paid the redemption fine and penalty after the statutory period of 120 days and without a pending appeal, is entitled to re-export the confiscated goods and related directions; and whether the petitioner is entitled to refund of the redemption fine.

Analysis: The Adjudicating Authority's order dated 28.06.2023 confiscated the imported goods but expressly granted an option to redeem the confiscated goods for re-export on payment of a specified redemption fine and penalty under Section 125 and Section 112 of the Customs Act, 1962. Section 125(3) provides that the option to pay the fine becomes void if the fine is not paid within 120 days from the date of the option unless an appeal against the order is pending. The petitioner did not file any appeal under Section 128 and paid the redemption fine and penalty only after about one year, well beyond the 120-day period. There is no factual or legal basis to treat the late payment as preserving the statutory option where no appeal was pending, and ignorance of the limitation provision is not a ground to extend or revive the statutory option. The respondents have accepted liability to refund the redemption fine but not the penalty.

Conclusion: The petition is dismissed; the petitioner is not entitled to a direction to re-export the goods as the statutory option under Section 125(3) is void for non-payment within 120 days in absence of a pending appeal. The respondent authorities are directed to refund the redemption fine of Rs. 12,00,000 to the petitioner within one week.

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