Defective imported goods may be re-exported when prior disclosure supports benefit of doubt and confiscation is unwarranted.

Confiscation of imported goods and penalty were not justified where the assessee had informed the Development Commissioner and Customs authorities about receipt of defective goods before departmental detection, sampling, and seizure, entitling it to the benefit of doubt. A customs circular permitting replacement and re-export of damaged, defective, or otherwise unfit imported goods supported the request, and re-export was allowed.

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Issues: Whether the confiscation of imported goods and the penalty imposed on the assessee were justified, and whether permission to re-export the goods was warranted.

Analysis: The purchase order and invoices did not contain sufficient specifications, but the record showed that the assessee had itself informed the Development Commissioner and Customs authorities about receipt of defective goods before departmental detection, sampling, and seizure. In these circumstances, the assessee was entitled to the benefit of doubt. The Board's Circular No. 60/99-Cus. dated 10-9-99, which permits replacement and re-export of damaged, defective, or otherwise unfit imported goods, supported the request for re-export.

Conclusion: The confiscation and penalty were not justified, and the assessee was permitted to re-export the goods.

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