No duty in case of relinquishment of the title to the goods [Section 23(2)]
The owner of any imported goods may, at any time before
an order for clearance of goods for home consumption \
or an order permitting the deposit of goods in a warehouse has been made,
relinquish (sacrifice) his title to the goods
and thereupon, he shall not be liable to pay the duty thereon.
Relinquishment not allowed in case of Offence/Violation of Law
However, the owner of any such imported goods shall not be allowed to relinquish his title to such goods regarding which an offence appears to have been committed under this Act or any other law for the time being in force
Why will owner of goods relinquish delivery of goods?
- Goods imported are not as per specification
- Goods are damaged during voyage (journey into India and hence useless)
- The importer is unwilling to take delivery of goods due to breach of contract or some other reason