Customs duty on gifted imports remains payable absent a specific exemption, with refund denied and duty upheld.

Customs duty on an imported cassette player received as a gift was held validly leviable because the import contravened the import control regime and no specific exemption applied. The record showed no exemption beyond the prescribed monetary limit and no ad hoc Government of India exemption covering the goods. Although no penalty was imposed and the goods were cleared on payment of duty, that did not justify waiver or refund. The refund claim therefore failed and the duty demand was upheld.

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Issues: Whether customs duty paid on an imported cassette player received as a gift was refundable or liable to be waived in the absence of any exemption.

Analysis: The imported cassette player was found to have been brought in in contravention of the import control regime. No penalty was imposed, but the goods were allowed to be cleared on payment of the applicable customs duty. The record disclosed no exemption in favour of gifts beyond the prescribed monetary limit, and no ad hoc exemption issued by the Government of India covered the goods. In these circumstances, the duty demanded by the customs authorities was held to be properly leviable.

Conclusion: The claim for refund failed and the duty demand was upheld against the assessee.

Ratio Decidendi: In the absence of a specific exemption, customs duty validly leviable on imported goods cannot be waived or refunded merely because the goods were received as a gift.

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