Liability to pay customs duty when confiscated goods are...

Liability to pay customs duty when confiscated goods are redeemed after payment of fine u/s 125 of the Customs Act, 1962 includes liability to pay interest on delayed payment u/s 28AB. The customs duty obligation arises only after exercising the option to redeem confiscated goods u/s 125. Once exercised, acceptance is subject to conditions specified, primarily payment of fine in lieu of confiscation. This duty obligation is inextricably connected to the redemption option and is a precondition. The duty obligation does not occasion u/ss 12 or 28 but arises due to the option exercised u/s 125. Section 28 applies for assessing and determining the duty payable u/s 125(2). Once Section 28 applies, interest on delayed payment arises u/s 28AB, obligating payment of interest in addition to duty. The Jagdish Cancer case is not an authority against applying Section 28 for duty calculation when liability arises u/s 125.