Customs penalty unsustainable where goods were cleared on an authorised pre-shipment certificate and no contrary evidence was produced.

Penalty under Section 112 of the Customs Act, 1962 was unsustainable where imported goods had been cleared on the basis of a pre-shipment certificate issued by an authorised body and no contrary evidence was produced by the Revenue. The Customs authorities had accepted the certificate at the time of clearance, and prior communication from the Bangladesh Deputy High Commission supported the issuing institution's authority to certify AZO and hazardous dyes. In the absence of corroborative material discrediting that certificate or showing any offence by the importer, the penalty was set aside and consequential relief followed.

---

---

Issues: Whether the penalty imposed under Section 112 of the Customs Act, 1962 was sustainable when the goods were cleared on the basis of a Pre-Shipment Certificate issued by Bangladesh University of Textiles.

Analysis: The goods were assessed and cleared by the Customs authorities on the basis of the Pre-Shipment Certificate, and no objection was raised at the time of clearance. A prior communication from the Deputy High Commission of the People's Republic of Bangladesh certified that the institution, then known as the College of Textile Technology and later as Bangladesh University of Textiles, was a government organisation authorised to issue certificates regarding AZO and hazardous dyes. No contrary corroborative evidence was produced by the Revenue to discredit that certificate or to show any offence by the importer.

Conclusion: The Pre-Shipment Certificate was held to be valid, and the appellant was found not to have committed any offence warranting penalty under Section 112 of the Customs Act, 1962.

Final Conclusion: The penalty was set aside and the appeal was allowed with consequential relief.

Ratio Decidendi: When imported goods are cleared on the basis of a certificate that is shown to be issued by an authorised body and the Revenue produces no contrary evidence, penalty under Section 112 of the Customs Act, 1962 cannot be sustained.

---