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Issues: Whether confiscation, redemption fine and penalty for import of steel scrap could be sustained when the pre-shipment inspection certificate was not furnished and whether the goods should instead be subjected to expert inspection before a final decision.
Analysis: The dispute turned on the handling of a live consignment of imported steel scrap that had been absolutely confiscated for want of a pre-shipment inspection certificate required under the relevant trade policy framework and departmental instructions. The record indicated that the goods remained with Customs and that an expert examination could safely determine whether they contained any prohibited or hazardous material and whether they were fit for home consumption or needed to be re-exported. In those circumstances, the existing confiscation and consequential penalties were found to be unsustainable without first undertaking inspection through an expert agency at the importer's cost.
Conclusion: The confiscation order and the appellate affirmation were set aside, and the matter was directed to be reconsidered after expert inspection within the stipulated period.
Final Conclusion: The importer obtained relief from the existing confiscation and penalty order, and the customs authorities were required to decide the fate of the goods afresh after inspection.
Ratio Decidendi: Where imported goods remain a live consignment and safety concerns can be addressed by expert examination, confiscation and consequential penal action should not be maintained without first allowing such inspection and a fresh decision on the goods' admissibility.