Absolute confiscation of non-prohibited goods is unsustainable, and redemption must be allowed under customs law.

Where goods are neither prohibited nor notified, absolute confiscation is not sustainable and redemption under Section 125 of the Customs Act, 1962 must be afforded; confiscation under Section 111(d) cannot stand as absolute confiscation. Applying that consistent Tribunal view to a stay petition involving cellular phones said to be non-prohibited goods, unconditional waiver of pre-deposit of the penalty amount was granted.

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Issues: Whether unconditional waiver of the pre-deposit of the penalty amount was warranted in a stay petition concerning confiscation of cellular phones alleged to be not prohibited goods.

Analysis: The Tribunal noted its consistent view that where goods are neither prohibited nor notified, absolute confiscation is not sustainable. Reliance was placed on earlier Tribunal decisions holding that, in such cases, redemption under Section 125 of the Customs Act, 1962 must be afforded and confiscation under Section 111(d) of the Customs Act, 1962 cannot stand as absolute confiscation.

Conclusion: Unconditional waiver of the pre-deposit of the entire amount was granted in favour of the applicant.

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