Redemption of confiscated goods cannot be used to order re-export; customs law allows redemption on payment of fine only.

Section 125 of the Customs Act, 1962 permits redemption of confiscated goods on payment of fine in lieu of confiscation, but it does not authorise an adjudicating authority to direct re-export of such goods on payment of redemption fine. The proper legal course is to order confiscation and then grant redemption subject to payment of the prescribed fine, with any later export governed separately by the applicable customs law. The order allowing re-export on redemption fine was therefore unsustainable, while the confiscation itself was maintained and redemption remained available to the owner on payment of fine.

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Issues: Whether the adjudicating authority had power to permit re-export of confiscated goods on payment of redemption fine, and whether the confiscation order required modification.

Analysis: Section 125 of the Customs Act, 1962 empowers the adjudicating authority to give the owner an option to redeem confiscated goods on payment of fine in lieu of confiscation. That provision validates the import on payment of fine and allows the owner to deal with the goods subject to the Customs Act, 1962 and the Rules made thereunder. It does not authorise an order permitting re-export on payment of redemption fine. The proper course is to order confiscation and grant redemption of the goods on payment of fine, leaving any subsequent export to be governed by the applicable customs law.

Conclusion: The order permitting re-export on payment of redemption fine was unsustainable. The confiscation was upheld, but the appellants were entitled to redeem the goods on payment of redemption fine.

Ratio Decidendi: Section 125 of the Customs Act, 1962 authorises redemption of confiscated goods on payment of fine in lieu of confiscation, but does not confer power to direct re-export on payment of such fine.

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