M/S Navayuga Engineering Co.Ltd vs Union Of India

The Supreme Court held that under Section 125 of the Customs Act, 1962, the owner of confiscated goods is liable to pay customs duty even after redeeming the goods by paying a fine. The Court clarified that the obligation to pay duty arises only when the owner opts for redemption and that the assessment of duty must be conducted under Section 28, which also entails liability for interest on delayed payment under Section 28AB. The Court further clarified that the previous ruling in Commr. of Customs (Import) v. Jagdish Cancer and Research Centre does not support the notion that duty liability under Section 125(2) cannot be assessed under Section 28.