BIS marking defect cured before clearance: imported goods conforming to standards were not liable to customs confiscation.

Imported alloy tool steel was held not liable to confiscation where the supplier held a valid BIS licence, the goods conformed to the prescribed standard, and the BIS mark was affixed before clearance under customs supervision. The omission of the mark at arrival was treated as a curable defect of form, not a substantive breach. Once the import conditions were complied with, the goods were not prohibited goods under the Customs Act, and confiscation under section 111(d) was unsustainable.

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Issues: Whether imported alloy tool steel lacking BIS marking at the time of arrival became liable to confiscation under section 111(d) of the Customs Act, 1962, despite the goods being covered by BIS registration, conforming to the prescribed standard, and having the mark affixed before clearance under customs supervision.

Analysis: The foreign supplier held a valid BIS licence for the goods and the test certificate showed conformity with the prescribed standard. The omission of the BIS mark was treated as a curable defect, not a substantive breach, because the required mark was affixed before clearance under customs supervision. Section 2(33) of the Customs Act, 1962 excludes goods from the definition of prohibited goods once the conditions for permitted import are complied with. The object of the BIS requirement was satisfied, and no mala fides or non-conformity of the goods was established. The defect was therefore one of form rather than substance, and the authorities' reliance on confiscation was unsustainable.

Conclusion: Confiscation under section 111(d) of the Customs Act, 1962 was not justified and the relief against the impugned order was warranted in favour of the assessee.

Final Conclusion: The appeal succeeded because the import conditions stood complied with upon affixation of the BIS mark before clearance, and the goods could not be treated as liable to confiscation on the facts found.

Ratio Decidendi: Where imported goods conform to the prescribed standard and the statutory marking requirement is cured before clearance under customs supervision, omission of the mark at the time of arrival does not render the goods prohibited or justify confiscation.

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