Disposal goods require affirmative proof of old or unwanted stock; mixed sizes and low price alone are insufficient.

Imported polyester woven labels were not proved to be disposal goods, because the Department did not discharge the initial burden of showing that the goods were old, deteriorated, unwanted stock, or sold at a throwaway price. Allegations based only on mixed sizes, packing variation, weighment purchase, and price comparison were insufficient, especially where the importer disputed the factual basis and sought re-examination of the goods. On that record, a specific import licence requirement was not established, and confiscation and penalty were held unsustainable.

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Issues: Whether the imported polyester woven labels were disposal goods requiring a specific import licence and, therefore, liable to confiscation and penalty.

Analysis: The Department bore the initial burden to establish that the goods were disposal goods. The finding was based mainly on the alleged jumbling of different sizes and makes, the purchase on weighment basis, and the comparison of prices. However, the assessee disputed the factual basis of jumbling and requested re-examination of the goods, which was not undertaken. The material on record did not show that the exporter was anxious to get rid of the goods, that they were old, deteriorated, or sold at throwaway price. Mere variation in sizes, packing, or price could not, by itself, establish that the goods were disposal goods when the goods were otherwise claimed to be new and marketable.

Conclusion: The imported goods were not proved to be disposal goods, and the confiscation and penalty orders were unsustainable.

Final Conclusion: The appeals succeeded and the orders of the lower authorities were set aside with consequential relief.

Ratio Decidendi: Disposal goods cannot be inferred merely from mixed sizes, low price, or non-uniform packing; the Department must affirmatively prove that the goods are old, deteriorated, or otherwise being disposed of as unwanted stock.

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