Appellate power to permit redemption of confiscated goods was upheld prima facie, defeating the department's stay request.

Commissioner (Appeals) was treated as having prima facie power to modify an order of absolute confiscation by permitting redemption on payment of fine, because appellate jurisdiction under Section 128A extends to confirming, modifying or annulling the adjudicating authority's decision. The objection that Section 125 power rests only with the adjudicating authority was kept for regular hearing and was not accepted as a basis for interim relief. On that footing, the department's request for stay of the appellate order was rejected and the matter was directed to be listed for early hearing.

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Issues: Whether the Commissioner (Appeals) had power to allow redemption of confiscated goods in exercise of appellate jurisdiction, and whether the department was entitled to stay of the operation of that order.

Analysis: The order noted the revenue's objection that the power under Section 125 of the Customs Act vested only in the adjudicating authority. It was observed, prima facie, that Section 128A empowered the Commissioner (Appeals) to confirm, modify or annul the decision of the adjudicating authority. Since the original order had directed absolute confiscation and the appellate order had merely modified it by allowing redemption on payment of fine, the appellate order appeared to fall within that power. The jurisdictional objection was treated as an issue for regular hearing and not a ground for stay.

Outcome: The application for stay filed by the department was rejected, and the appeals were directed to be listed for early regular hearing.

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