Here's a consolidated legal and procedural response regarding the confiscation under Sections 113(i), 113(ia), redemption fine under 125, and the current issue of shipment still being on hold after payment.
✅ Legal Position Summary:
🔹 Sections Involved:
Section 113(i) – Goods liable for confiscation if exported against a prohibition under law.
Section 113(ia) – Goods liable for confiscation if concealed to misdeclare value, quantity, or description.
Section 125 – Permits release of confiscated goods on payment of redemption fine, at the discretion of Customs.
Section 114(iii) – Penalty for attempt to export goods that are prohibited or improperly declared.
Section 114AA – Penalty for knowingly using false or incorrect documents in export.
⚖️ Key Legal Points:
1. Right to Release After Redemption Fine Paid
Under Section 125(1):
"The confiscated goods shall be returned to the person on payment of the fine imposed, subject to the fulfillment of other conditions, if any, specified in the adjudication order."
✅ Therefore, once redemption fine and penalty are paid, and no further legal restrictions (like prohibition orders or parallel investigations) exist, Customs must release the goods.
2. Can Customs Demand a “No Appeal” Undertaking?
❌ No, this is not legally permissible.
Section 128 of the Customs Act provides a statutory right to appeal within 60 days of the Order-in-Original.
Customs cannot compel the exporter to waive this right.
It would amount to coercion and violation of natural justice if release is made contingent on not appealing.
3. Ongoing Hold Despite Payment – Is It Justified?
Only valid if:
The Order-in-Original specifically withholds release pending any other authority’s clearance. There is a written communication regarding DRI, ED, or DGFT issues. If none of the above apply, this is procedural delay without legal standing.
📢 What You Should Do Immediately:
Official Letter as You Drafted (Excellent Draft Above):
Use your draft to formally demand release, citing the full compliance with the order.
Object clearly to the “no appeal” request.
Escalate to Higher Authorities:
Email or physically submit the same to the Joint Commissioner or Commissioner of Customs (Export).
Mark a copy to Commissioner (Export Promotion) and Chief Commissioner, Mumbai Zone II for added visibility.
Grievance Filing:
File a complaint on ICEGATE Grievance Redressal Portal
Also raise it via PG Portal.
Use RTI if Delay Continues:
File an RTI seeking:
Reasons for delay after payment.
Legal authority demanding “no appeal” letter.
Status of any investigation, if applicable.
📝 RTI Sample Question:
“Please provide a certified copy of any instructions, internal note, or direction under which Customs is holding the consignment covered under SB No. XXX dated XXX despite full payment of redemption fine and penalty. Also confirm whether any legal basis exists for asking the exporter to submit a written statement that they will not appeal.”
Appendix – A
Here's a clear and concise explanation of goods confiscated under Section 113(i) and 113(ia) and redemption fine under Section 125 of the Customs Act, 1962 (India):
🔹 Section 113 of the Customs Act – Confiscation of Export Goods
Section 113 lists the circumstances under which export goods can be confiscated by Customs authorities.
➤ Section 113(i)
Goods are liable for confiscation if:
“Any goods which are attempted to be exported or brought within the customs area for the purpose of being exported, in violation of any prohibition imposed under this Act or any other law for the time being in force.”
🔹 Example: Trying to export endangered species or narcotics, which are prohibited under other laws.
➤ Section 113(ia)
Goods are liable for confiscation if:
“Any goods found concealed in a manner that shows intent to misdeclare the quantity, quality, or value for the purpose of export.”
🔹 Example: Hiding extra gold bars inside machine parts meant for export, without declaring them.
🔹 Section 125 – Option to Pay Fine in Lieu of Confiscation (Redemption Fine)
Even when goods are liable to confiscation, under Section 125, the adjudicating authority may allow the owner to redeem the goods on payment of a fine, called a redemption fine.
This is at the discretion of Customs.
Redemption fine is in addition to any duty and penalty payable.
📝 Key Points:
Confiscation doesn’t always mean the goods are taken away permanently.
The owner can pay redemption fine and get the goods back.
Redemption fine amount is based on the market value of the goods and severity of the offense.
📌 Summary Example:
If an exporter tries to smuggle out undeclared gold hidden inside machinery (a violation under Section 113(ia)), Customs can confiscate the goods. But under Section 125, the exporter may be allowed to pay a redemption fine (say, ₹5 lakhs) to reclaim the goods.
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