Imported goods assessed at import condition, with misdeclared serviceable garments still liable to confiscation and redemption fine.

Imported goods are to be judged for confiscation and redemption on the condition in which they were imported. Where a consignment declared as premutilated rags was found to contain serviceable garments, that portion was treated as offending goods because it was unauthorised, not eligible for OGL clearance, and covered by no valid licence. Mutilation before clearance did not remove the misdeclaration or cure the import defect. Redemption fine therefore remained imposable, and confiscation with fine and penalty was restored.

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Issues: Whether redemption fine could be waived on the footing that the imported goods were to be cleared only after mutilation, despite examination showing that a part of the consignment consisted of fully serviceable garments imported as premutilated rags.

Analysis: The goods had to be assessed in the condition in which they were imported. Once the consignment declared as completely premutilated rags was found to contain serviceable garments, that portion became offending goods. Their import was unauthorised because they were not eligible for clearance under OGL and the importer had no valid licence. Confiscation under the provisions governing improper import and misdeclaration followed as a logical consequence. The requirement of mutilation before clearance did not erase the offending character of the goods as imported, and redemption fine could still be imposed.

Conclusion: The waiver of redemption fine was unsustainable and the confiscation with fine and penalty was restored, in favour of the Revenue.

Ratio Decidendi: Imported goods must be judged for confiscation and redemption on the basis of their condition at the time of import, and subsequent mutilation does not nullify liability for confiscation, redemption fine, or penalty where the import is unauthorised or misdeclared.

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