In Brief
The Supreme Court addressed whether customs duty must be paid when confiscated goods are redeemed by payment of fine under Section 125 of the Customs Act, and whether interest on delayed payment applies. The Court held that owners must pay customs duty upon redeeming confiscated goods, provided they exercise the option under Section 125 and the Department accepts it. The duty obligation arises under Section 125(2) but must be assessed and determined under Section 28. Consequently, interest on delayed payment under Section 28AB also applies. The Court clarified that the Jagdish Cancer decision does not prevent assessment of duty under Section 28 when liability originates under Section 125(2). The High Court's judgment was upheld.
The lawyer headnote and full judgment text are available to registered users.