New and unused goods test governs import control; mixed lots and lower price do not by themselves make goods disposal goods.

Imported stainless steel pipes and tubes were not treated as disposal goods merely because they were bought in a mixed lot at a reduced price. The governing import condition required imported goods to be new and unused unless otherwise permitted, so the relevant inquiry was the actual character of the goods. Variation in size, type, or purchase at a lower price did not, by itself, establish that the goods were second-hand or disposal goods. A breach of the licensing condition had to be proved on the basis of the goods' real condition, not on price or non-uniformity alone.

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Issues: Whether imported stainless steel pipes and tubes, though purchased as a mixed lot and at a lower price, could be treated as "disposal goods" so as to constitute a breach of clause 5(3)(iii) of the Imports (Control) Order, 1955 and justify confiscation under the Customs Act, 1962.

Analysis: Clause 5(3)(iii) of the Imports (Control) Order, 1955 required that, unless otherwise stated in the licence, imported goods must be new goods and not disposal goods. The decisive inquiry was whether the goods were new and unused; mere variation in size, type, or the fact that they were purchased in a lot at a reduced price did not, by itself, convert them into disposal goods. The authorities below proceeded on the mistaken assumption that non-uniformity and lot purchase were sufficient to infer disposal character, without finding that the goods were second-hand or used. On the plain meaning of the condition, disposal goods are the opposite of new goods, and if the goods are new, the licensing condition is not infringed merely because they are mixed or of varying dimensions.

Conclusion: The imported goods were not disposal goods within the meaning of the import control condition, and the confiscation order could not be sustained.

Ratio Decidendi: Goods that are found to be new and unused cannot be treated as disposal goods merely because they are imported in a mixed lot or at a lower price; breach of a licensing condition must be established on the actual character of the goods, not on size variation or price alone.

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