Redemption fine cannot be imposed when confiscated goods are permitted to be re-exported without authority under Customs law.

Where confiscated goods are allowed to be re-exported under the Customs Act, 1962, redemption fine is not sustainable in the absence of authority under section 125. The Tribunal applied its earlier view that the adjudicating authority cannot impose redemption fine in a re-export situation, and held that the fine had to be set aside. The confiscation and re-export arrangement otherwise remained undisturbed, so only the monetary penalty component was deleted.

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Issues: Whether redemption fine could be imposed when confiscated goods were permitted to be re-exported under the Customs Act, 1962.

Analysis: The Tribunal followed its earlier view that, in cases of re-export of goods, the adjudicating authority is not empowered to impose redemption fine. The earlier ratio was treated as fully applicable to the facts of the present case.

Conclusion: The redemption fine was not sustainable and was set aside.

Final Conclusion: The appeal succeeded to the extent that the fine imposed on the appellants was deleted, while the confiscation and re-export arrangement otherwise remained undisturbed.

Ratio Decidendi: Where confiscated goods are permitted to be re-exported, redemption fine cannot be imposed in the absence of authority under section 125 of the Customs Act, 1962.

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