Finality of appellate clearance barred fresh customs objection to re-imported diamonds and defeated confiscation.

Customs authorities could not deny clearance of re-imported diamonds or sustain confiscation where an earlier appellate order had already treated the consignment as re-imported goods and allowed release. That order had attained finality because the Revenue did not challenge it, so the issue could not be reopened at the stage of physical clearance by raising a fresh objection under Section 20 of the Customs Act, 1962. The explanation for the absence of customs seals was also accepted as reasonable in light of the opening and inventory of the parcel on return. Clearance was therefore to be allowed and confiscation could not stand.

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Issues: Whether the customs authorities could deny clearance and sustain confiscation of re-imported diamonds after an earlier appellate order had allowed their release.

Analysis: The prior appellate order treated the consignment as re-imported goods and allowed clearance. Since the Revenue did not challenge that order, it attained finality and could not be reopened at the stage of physical clearance by raising a fresh objection that the goods were not covered by Section 20 of the Customs Act, 1962. The explanation for absence of customs seals was also found reasonable in the circumstances of opening and inventory of the parcel on return.

Conclusion: The confiscation could not be sustained and the clearance of the goods had to be allowed in favour of the appellant.

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