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2020 ] CONFISCATION AND REDEMPTION OF CONFISCATED GOODS UNDER CGST A169

CONFISCATION AND REDEMPTION OF CONFISCATED GOODS UNDER CGST
CONFISCATION AND REDEMPTION OF
CONFISCATED GOODS UNDER CGST VIS-
À-VIS CUSTOMS ACT
CONFISCATION AND REDEMPTION OF CONFISCATED GOODS UNDER CGST
CONFISCATION AND REDEMPTION OF CONFISCATED GOODS UNDER CGST
By
Vijay Shekhar Jha, LL.M.
ASSOCIATE AT ASAV ATTORNEYS & ADVISORS LLP

Introduction
The statutory provisions relating to confiscation
of goods enjoins on the adjudicating authorities to give
option to the owner of confiscated goods to redeem such goods on payment of
fine. The fine so imposed for redemption of confiscated goods is called redemp-
tion fine. In this article, it has been attempted to analyse the statutory provisions
relating to redemption of confiscated goods as contained in the Customs Act,
1962 [C.B.E. & C. Instruction F. No. 390/Misc./163/2010-JC, dated 3-6-2013.] and
in the Central Goods and Services Tax Act, 2017 (hereinafter referred to as
“CGST Act”).
Sections 115, 124 & 125 of the Customs Act, 1962 and Section 130 of the
CGST Act deal with the concept of ‘Redemption Fine’ (refer to the table men-
tioned below) :

S. Related Provisions Related Description
No. under Customs Act, Provisions under
1962 CGST Act
1. Section 115 Section 130 Confiscation of Conveyance
and Option to fine in lieu of
confiscation
2. Section 124 Section 130(4) SCN and opportunity of be-
ing heard before confiscation
of goods
3. Section 125 Section 130(1), (2) When goods become liable
for confiscation and Option
to fine in lieu of confiscation

(Note - Here, it may be noted that in this article, only the provisions of Sections
124 & 125 of the Customs Act, 1962 are dealt with.)
Whether or not Sections 124 & 125 of the Customs Act, 1962 and Section 130 of
CGST Act, 2017 are in pari materia :
Before embarking on any discussion on ‘Redemption Fine’, it is neces-
sary to first settle the issue “whether or not Sections 124 & 125 of the Customs
Act, 1962 and Section 130 of the CGST Act are in pari materia”
The meaning of the phrase ‘pari materia’ has been explained in an Ameri-
can case United Society v. Eagle Bank, (1829) 7 Connecticut 457, p. 470, as cited in
CRAIES, Statute Law, p. 134 (7th Edition ) in the following words :
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