Damaged warehoused goods need timely intimation for reduced-value assessment; late notice defeats Section 22 relief and duty relief.

Section 22 relief for damaged imported goods applies only where the importer shows, to the satisfaction of the proper officer, that damage or deterioration existed at the relevant stage before clearance and is duly intimated. Although the goods were damaged before warehousing, no intimation was given before the warehousing period expired. On expiry of the permitted period without removal, the goods were treated as improperly removed from the warehouse, so duty was chargeable on the date of deemed removal. The cited precedent was distinguished because it did not involve warehoused goods or non-compliance with the statutory timeline. The claim for reassessment on salvage value was rejected and the duty demand sustained.

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Issues: Whether warehoused imported goods that had suffered damage before warehousing were entitled to assessment on reduced value under Section 22 of the Customs Act, 1962 when intimation of damage was given only after expiry of the warehousing period.

Analysis: Relief under Section 22 is available when the importer shows to the satisfaction of the proper officer that the imported goods were damaged or deteriorated at the relevant stage before clearance. The goods in question had already been damaged before warehousing, but no intimation of such damage was furnished to the customs authorities before the warehousing period expired. Once the permitted warehousing period ended without removal, the goods were treated as improperly removed from the warehouse, attracting duty on the date of deemed removal. The authority distinguished the cited precedent as it did not concern warehoused goods and did not support relief in the absence of timely compliance with the statutory requirements.

Conclusion: The claim for reassessment on salvage or damaged value under Section 22 was rejected, and the duty demand on the warehoused goods was sustained.

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