Section 124. Procedure for Confiscation of Goods:
These provisions are applicable to Central Excise also. Before confiscation, a show cause notice has to be served on the owner of the goods. An opportunity shall be given for representation of the case. The show cause notice must be given only with prior approval of an officer not below the rank of an assistant commissioner.
Section 125: Redemption Fine:
The owner of confiscated goods may be given an option to redeem (buy back) the confiscated goods. The amount paid on such buy back is called redemption fine. If the goods are prohibited goods, the officer may allow redemption and the owner cannot claim it as a matter of right.
In the case of other goods, the officer shall give an opportunity to redeem. The redemption fine shall not be more than the market value of goods excluding the customs duty. The owner of goods is also liable to pay duty and other charges, such as storage & interest.
Where the fine so imposed is not paid within a period of one hundred and twenty days from the date of option given thereunder, such option shall become void, unless an appeal against such order is pending.
Adjudication Procedure (Section 122A)
The adjudicating authority shall, give an opportunity of being heard to a party in a proceeding, if the party so desires. The adjudicating authority may, if sufficient cause is shown at any stage of proceeding referred to in subsection (1), grant time, from time to time, to the parties or any of them and adjourn the hearing for reasons to be recorded in writing :