Redemption fine under customs law remains payable on confiscated goods even when re-export is permitted.

Section 125 of the Customs Act permits redemption of confiscated goods on payment of fine even where the option granted is re-export rather than clearance for home consumption. Once goods are confiscated, they vest in the Government, and permission to re-export does not extinguish the liability to pay redemption fine, though the amount may be reduced depending on the circumstances. The confiscation and penalty were upheld, and the redemption fine was sustained in principle but reduced on the facts.

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Issues: Whether redemption fine can be imposed under Section 125 of the Customs Act when confiscated imported goods are permitted to be re-exported instead of being cleared for home consumption.

Analysis: The goods were found liable to confiscation for non-declaration on import and attempted clearance through the green channel. It was held that once goods are confiscated, they vest in the Government, and Section 125 of the Customs Act permits redemption of such confiscated goods on payment of fine whether the option is for home consumption or for export. Allowing re-export on redemption does not extinguish the liability to pay redemption fine, though the quantum may be lower in appropriate cases.

Conclusion: Redemption fine was legally sustainable despite the permission to re-export the goods.

Final Conclusion: The confiscation and penalty were upheld, while the redemption fine was reduced having regard to the nature of the goods and the circumstances of export.

Ratio Decidendi: Section 125 of the Customs Act permits redemption fine on confiscated goods even when redemption is allowed for re-export, and not merely when goods are cleared for home consumption.

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