Pre-shipment inspection certificate deficiency did not justify confiscation where scrap contained no objectionable goods and import conditions were otherwise met.

Imported shredded scrap was not liable to confiscation merely because the pre-shipment inspection certificate was issued by an agency not expressly notified for the country of origin, where the certificate had been furnished and post-shipment inspection found no objectionable goods. The notification list did not create a complete prohibition on imports from that country, and the primary obligation to obtain and furnish the certificate rested on the exporter. Since the consignment otherwise satisfied the foreign trade conditions and no prohibited material was found, confiscation under the customs prohibition provision was not justified. The penalty was therefore unsustainable and was set aside.

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Issues: Whether imported shredded scrap could be confiscated and penalty imposed merely because the pre-shipment inspection certificate was issued by an agency not expressly notified for the country of origin, despite the certificate being furnished and post-shipment inspection showing no objectionable goods.

Analysis: The imported goods were found to satisfy the foreign trade conditions except for the objection regarding the validity of the pre-shipment inspection certificate. The certificate had in fact been furnished by a recognised agency listed for several countries, and the absence of a specific country entry did not establish a complete prohibition on import from that country. The legal obligation to furnish the inspection certificate lay primarily on the exporter, and any deficiency in the notification list could not, by itself, convert the import into prohibited goods. The post-shipment inspection also showed that the consignment contained no objectionable items. In these circumstances, confiscation under the customs prohibition provision was not justified.

Conclusion: The confiscation and penalty were unsustainable and were set aside in favour of the assessee.

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