Independent re-test evidence displaced misdeclaration allegations, and the import licence covered the declared goods subject to balance.

An independent re-test report found that the imported material was not coated or plated with the metals alleged and appeared to be mild steel sheet, thereby displacing the foundation of the original laboratory-based finding. The import licence was held to cover the declared item, subject to adequate licence balance. As a result, the allegations of misdeclaration, undervaluation and unauthorised import did not survive, and the confiscation and penalty were held unsustainable. The goods were directed to be assessed on the declared description and value, with the licence accepted to the extent of available balance.

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Issues: Whether the imported goods were liable to confiscation and penalty on the basis of the original laboratory test report, alleged misdeclaration, alleged undervaluation and alleged invalidity of the import licence.

Analysis: The re-test report obtained from an independent laboratory found that the material was not coated or plated with the metals alleged and that it appeared to be mild steel sheet. This displaced the foundation of the order-in-original. The import licence also covered the declared item, subject to availability of adequate licence balance. In these circumstances, the basis for treating the goods as misdeclared, undervalued or unauthorisedly imported did not survive.

Conclusion: The confiscation and penalty were unsustainable and the goods were directed to be assessed on the declared description and value, with the import licence accepted subject to adequate balance.

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