The Customs Act, 1962
68. CLEARANCE OF WAREHOUSED GOODS FOR HOME CONSUMPTION.
The importer of any warehoused goods may clear them for home consumption, if –
(a) a bill of entry for home consumption in respect of such goods has been presented in the prescribed form;
(b) the import duty leviable on such goods and all penalties, rent, interest and other charges payable in respect of such goods have been paid; and
(c) an order for clearance of such goods for home consumption has been made by the proper officer.
1[Provided that the owner of any warehoused goods may, at any time before an order for clearance of goods for home consumption has been made in respect of such goods, relinquish his title to the goods upon payment of rent, interest, other charges and penalties that may be payable in respect of the goods and upon such relinquishment, he shall not be liable to pay duty thereon.]
2[Provided further that the owner of any such warehoused 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.]
Intentionally withholding the goods by the customs authorities after payment of legal duties has been held illegal and department cannot be allowed to take advantage of its own wrongful and illegal act; Priyanka Overseas Pvt. Ltd. v. Union of India, AIR 1991 SC 583.
1. Ins. by Act 32 of 2003, sec. 114 (w.e.f. 14-5-2003).
2. Ins. by Act 21 of 2006, sec. 59 (w.e.f. 18-4-2006).