ORDER

1. The Appeal has impugned order dated 15.05.2026 of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, insofar as it has maintained redemption fine of Rs. 50 lacs imposed by the adjudicating authority, even in the event of availing option to re-export the confiscated goods. The composite penalty of Rs. 50 lacs under Sections 112(a) and 112(b) of the Customs Act, 1962 is reduced to Rs. 10 lacs and the penalty under Section 114(AA) of the Customs Act, 1962 is reduced from Rs. 2 crores to Rs. 50 lacs.

2. It is submitted that appellant has already deposited a sum of Rs. 3 crores out of which set-off has been permitted by the Tribunal in the impugned order as mentioned in para 31 thereof and its statutory application dated 20.11.2023 for compounding of alleged offences pending with the compounding authority.

3. In the impugned order, the Tribunal has directed as under in paras 30.1, 31 and 32:

“30.1. Therefore, it shall be option of the Appellant to redeem the confiscated goods for home consumption on payment of duty, interest, fine and penalties, or to re-export the confiscated goods on payment of fine and penalties.

31. In the above peculiar facts, a case fo