Tribunal sets aside penalty for abandoned goods under Customs Act, citing Section 23(2)

The Tribunal ruled in favor of the appellant, setting aside the penalty imposed under Section 112 of the Customs Act for abandoning imported goods without placing orders. Citing precedents, the Tribunal held that penalty is not applicable when goods are abandoned and title relinquished, as per Section 23(2) of the Customs Act. Therefore, the penalty imposition was deemed unjustified, and the appeal was allowed with any necessary consequential relief.

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The appellant was penalized Rs.1.20 lakhs under Section 112, Customs Act, for importing goods subsequently not ordered and abandoned. Reliance was placed on precedents holding that where the importer "relinquished the title and abandoned the goods and not opted to redeem the same then, penalty is not imposable." The tribunal noted Section 23(2), Customs Act, specifically provides for abandonment of goods and obviates duty in such circumstances. Applying the cited authorities and statutory provision, the tribunal concluded that "when goods have been abandoned and totally relinquished, penalty is not leviable under Section 112 of the Customs Act." The penalty was set aside and the appeal allowed with consequential relief.

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