Relinquishment of warehoused goods before clearance can end customs duty liability, absent any offence under the statute.

A warehoused goods owner may relinquish title before an order for clearance for home consumption is made, and on valid relinquishment under Section 68 of the Customs Act, duty liability does not arise. The benefit is not excluded merely because the waiver follows issuance of notice, unless an offence has been committed. The cited circular and precedent support that the statutory option remains available where the conditions are satisfied. On the facts stated, relinquishment occurred before clearance and no offence was found, so customs duty, penalty and redemption fine were not sustainable.

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Issues: Whether an importer who relinquishes title to warehoused goods before an order for clearance for home consumption is made remains liable to customs duty, interest, confiscation, redemption fine and penalty.

Analysis: Section 68 of the Customs Act, 1962 permits the owner of warehoused goods to relinquish title before an order for clearance for home consumption is made, and upon such relinquishment the owner is not liable to pay duty. The proviso does not exclude the benefit merely because the waiver is made after issue of notice, unless an offence appears to have been committed. The Board circular clarifies that relinquishment frees the importer from duty liability, and the cited precedent affirms that the option under Section 68 is available even on the facts already in issue so long as the statutory conditions are met. In the present case, no offence was found to have been committed and the appellants had relinquished title before clearance.

Conclusion: The appellants were not liable to customs duty on the warehoused goods after relinquishment of title, and the duty demand, penalty and redemption fine could not be sustained.

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