Lawful transfer of imported goods defeats confiscation where no prohibited import is established and ownership is proved.

Confiscation under Section 111(d) of the Customs Act was found unsustainable where the imported consignment had been lawfully transferred through the commercial chain to the claimants. The record showed that the original importer could not take delivery, the goods were resold to the claimants, payment was made, and the relevant shipping documents were obtained. The explanatory correspondence from the supplier supported a single continuing transaction and undermined the suggestion that the goods were two separate consignments. On that basis, no prohibited import was established, the claimants' ownership was proved, and they were entitled to have the bill of entry noted in their favour and clear the goods in accordance with law.

---

---

Issues: Whether the confiscation of the imported goods under Section 111(d) of the Customs Act, 1962 was justified, and whether the appellants had established ownership and entitlement to have the bill of entry noted in their favour.

Analysis: The goods were originally covered by a bill of entry filed by one importer, but the record showed that the consignment was later transferred to the appellants through the commercial chain relied upon by them. The correspondence produced by the appellants indicated that the earlier importer could not take delivery and that the goods were sold onward to the appellants, who had paid for them and obtained the relevant shipping documents. The rival case that the goods were two different consignments was not accepted in view of the explanatory letter from the supplier, which clarified the purchase from the original supplier and resale to the appellants. On those facts, the import was not shown to be contrary to any prohibition attracting confiscation under Section 111(d), and the appellants' ownership claim stood proved.

Conclusion: The confiscation was held to be bad in law, and the appellants were entitled to have the bill of entry noted in their favour and to clear the goods in accordance with law.

Ratio Decidendi: Confiscation under Section 111(d) of the Customs Act, 1962 cannot be sustained where the imported goods are shown to have been lawfully transferred to the claimant and no prohibited import is established.

---