Relinquishment of imported goods before out-of-charge bars duty and supports refund despite prior assessment.

Imported goods that had not been cleared for home consumption before out-of-charge could be relinquished by the importer, and duty was not leviable once title was relinquished under Section 23. The Tribunal held that because the proper officer had not granted clearance under Section 47, the importer could abandon the goods before such clearance, and refund could not be denied merely on the ground that the Bill of Entry had already been assessed. The objection based on non-challenge to the assessment did not prevail on the facts found, and the refund claim was admissible.

---

---

Issues: Whether imported goods could be abandoned and duty refunded where the goods had not been cleared for home consumption under Section 47 and the importer relinquished title before out-of-charge.

Analysis: The Bill of Entry had been assessed and duty with interest was paid, but the proper officer had not permitted clearance for home consumption under Section 47. As out-of-charge had not been granted, the importer was entitled to relinquish title to the goods under Section 23, and the statutory consequence was that duty was not payable on such goods. The objection based on non-challenge to the assessment did not prevail on the facts found by the Tribunal.

Conclusion: The refund claim was admissible and the impugned order rejecting refund was unsustainable.

Ratio Decidendi: Where imported goods have not been cleared for home consumption and the importer relinquishes title before such clearance, duty is not leviable and refund cannot be denied merely because the Bill of Entry had been assessed.

---