Duty remission for deteriorated bonded goods applies to imported raw materials, not withdrawn claims for other items.

Imported raw materials kept in a customs bonded warehouse were found to have deteriorated in value, and on those facts remission of duty under Section 23(1) of the Customs Act, 1962 was considered admissible for that portion. The claim relating to indigenous materials and goods manufactured in the EOU had been withdrawn, so no relief was available for that part of the dispute. The operative point is that duty remission depends on deterioration of the imported goods while under bonded storage, and the relief is confined to the goods actually covered by that statutory condition.

---

---

Issues: Whether remission of duty under Section 23(1) of the Customs Act, 1962 was admissible in respect of imported raw materials kept in customs bonded warehouse when their value had deteriorated.

Analysis: The imported raw materials were found to have lost value while in bonded storage. The relief sought in respect of indigenous materials and goods manufactured in the EOU was withdrawn, and the dispute was confined to imported raw materials. On those facts, the statutory requirement for remission on deterioration of goods was satisfied.

Conclusion: Remission of duty under Section 23(1) of the Customs Act, 1962 was admissible only for the imported raw materials, and the claim was rejected for the withdrawn portion.

---