Redemption fine and confiscation: late payment was treated as valid where departmental conduct implied an extension of time.

A time limit fixed for payment of redemption fine cannot be applied rigidly where the statutory scheme preserves an option to redeem confiscated goods, and ancillary discretion must be exercised consistently with that scheme. Here, no order had closed the redemption option after expiry of the original period, and the department's later communication requesting immediate payment supported the inference that time had been extended. Because the fine was paid shortly thereafter, the refusal to recognise the payment was inconsistent with the legislative intent. Absolute confiscation was therefore not sustained, and the redemption option was treated as validly exercised, requiring release of the goods to the assessee.

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Issues: Whether the confiscated goods could be treated as absolutely confiscated despite payment of redemption fine after expiry of the initially fixed period, and whether the subsequent communication from the Superintendent effectively extended the time for such payment.

Analysis: The order fixing a time limit was treated as an exercise of ancillary power, but that discretion had to be used rationally and in harmony with the statutory scheme requiring an option to pay fine in lieu of confiscation. The record showed that no order closing the option was passed after expiry of the original period. Instead, the department itself sent a further communication asking for immediate payment, and the fine was deposited within about five days. In these circumstances, the authority's refusal to extend time post facto, without justification, was held inconsistent with the legislative intention. The subsequent departmental notice was treated as supporting an inference that the time stood extended.

Conclusion: The absolute confiscation could not be sustained, the redemption option was treated as validly exercised, and the goods were directed to be released in favour of the assessee.

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