Country-of-origin marking on licensed imports: absence of marking was treated as a technical irregularity, not grounds for confiscation.

Imported industrial sewing machines cleared under a valid EPCG licence and intended for use in the importer's factory were held not liable to confiscation or penalty for absence of country-of-origin marking. The tribunal reasoned that the marking requirement under Section 117 of the Trade and Merchandise Marks Act, 1958 and the relevant notification applied only to goods within the notified category, and the exemption for imports not meant for trade use was relevant on the facts. The omission was treated as, at most, a technical irregularity, so the confiscation and penalty were unsustainable and the impugned order was set aside.

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Issues: Whether the imported industrial sewing machines were liable to confiscation and penalty for not bearing the country of origin marking when the goods were imported under a valid EPCG licence for use in the importer's factory.

Analysis: The imported goods were industrial sewing machines cleared under a valid EPCG licence, and the goods were intended for use in the factory for manufacture of final products. The requirement under Section 117 of the Trade and Merchandise Marks Act, 1958 and the notification issued thereunder applied to goods specified by the Central Government, but the relevant notification contained an exemption for goods imported for personal use and not for trade purpose. On the facts, the absence of country of origin marking on the imported machines did not attract the statutory requirement in the manner assumed by the authorities. The tribunal also treated the alleged defect as, at most, a technical irregularity in the light of the earlier decision relied upon.

Conclusion: The confiscation and penalty were unsustainable; the appeal succeeded.

Final Conclusion: The impugned order was set aside and the import was held not liable to confiscation or penalty on the stated ground.

Ratio Decidendi: Where imported goods are covered by a valid licence and fall outside the category to which the country-of-origin marking requirement applies, a mere absence of such marking does not justify confiscation or penalty, particularly when the infraction is only technical.

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