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2017 (7) TMI 274 - HC - CustomsRedemption fine - Whether the second respondent has misdirected itself in law and on facts in holding, that under the provisions of Section 125(1) of the Customs Act, 1962, the redemption fine shall be the present market value of the subject goods less the customs duty paid thereon? - Held that: - A perusal of Section 125 of the Act would show that whenever confiscation of goods is ordered, the officer may give the owner of the goods or where the owner of the goods is not known, the person from whom possession or custody of the goods is seized, option to pay in lieu of confiscation, such fine as he thinks fit. A plain reading of the section shows that this option would also extend to those confiscated goods, the importation or exportation of which is prohibited under the Act or any other law for the time being in force. In the instant case, the proviso to subsection (2) of Section 115 of the Act need not detain us, which generally relates to confiscation of conveyances. Suffice it to say that the authority concerned has the discretion to give an option to seek release of confiscated goods, upon payment of such fine as the authority thinks fit and, the fine so imposed should not exceed the market price of the confiscated goods and in arriving at the market price, adjustment of duty chargeable in case of imported goods is required to be made. The proviso to section 125(1) of the Act does not say as construed by the Tribunal that the redemption fine should equal the market value. Furthermore, it appears that the Tribunal did not give enough time to the revenue to revert with the necessary information as to what would be the market price of the subject goods - matter requires reconsideration - appeal allowed by way of remand.
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