Relinquishment of title to imported goods remains valid in the importer's custody, defeating customs duty liability.

Section 23(2) of the Customs Act was construed as permitting relinquishment of title to imported goods even when the goods remained in the importer's custody. The contention that custody alone made relinquishment invalid was rejected, and the department's claim that the goods had been sold was found unsupported by the bill of entry. On that basis, the relinquishment was treated as valid, no duty was payable on the imported goods, and the order relieving the importer from duty liability was sustained.

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Issues: Whether relinquishment of title to imported goods under Section 23(2) of the Customs Act was valid and effective so as to exempt the importer from duty, even though the goods were in the importer's custody.

Analysis: Section 23(2) was construed as not containing any exception excluding goods merely because they remained in the importer's custody. The challenge that relinquishment was impermissible on that ground was not accepted, and the departmental assertion that the goods had been sold was found unsupported by the bill of entry.

Conclusion: The relinquishment of title was held valid, and no duty was payable on the imported goods.

Final Conclusion: The departmental appeal failed, and the order relieving the importer from duty liability was sustained.

Ratio Decidendi: Section 23(2) of the Customs Act does not bar relinquishment of title merely because the imported goods are still in the importer's custody.

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