In Prikshith Jhaver v. Commissioner of Customs, the Delhi High Court held that Customs must quantify and communicate the duty payable before the deadline to redeem confiscated goods expires. Because Customs failed to tell the petitioner the duty despite his request, the Court ordered release of the confiscated gold bars.
If your goods are confiscated at the airport and you are allowed to redeem them on payment of a fine, ask Customs in writing for the exact duty and fine, and keep a copy of your request.
Under the Customs Act, 1962, goods brought into India in breach of the law can be held liable to confiscation under Section 111. Section 125 allows the adjudicating officer to give the owner an option to pay a redemption fine instead of losing the goods outright. Section 125(2) adds that the owner must also pay the duty and other charges payable on the goods. Under Section 125(3), if the fine is not paid within 120 days of the order, the option becomes void, unless an appeal against the order is pending.
In practice, a traveller whose goods are seized receives a show cause notice, a personal hearing and an adjudication order. To use the redemption option, the person must know the full amount of fine, duty and charges. An adjudication order can be appealed to the Commissioner (Appeals), generally within 60 days, and then to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
A redemption fine is an amount the owner can pay to get back goods that have been confiscated by Customs. Section 125 of the Customs Act allows the officer to offer this option in place of permanent confiscation. Along with the fine, the owner is usually also liable to pay the customs duty and related charges.
Yes. Section 125(3) of the Customs Act says that if the fine is not paid within 120 days from the date the option is given, the option becomes void, unless an appeal against the order is pending. It is important to act quickly and keep records of every request made to Customs.
Yes. An order passed by an adjudicating officer below the rank of Commissioner can be appealed to the Commissioner (Appeals), and further appeals lie to the CESTAT and then the courts on questions of law. Time limits apply, so the order should be reviewed with an advocate soon after it is received.
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