Custody loss of imported goods permits Bill of Entry amendment, re-assessment, and customs refund on existing documents.

Imported goods lost in the custodian's possession before physical delivery to the importer could justify amendment of the Bill of Entry under documentary evidence already in existence. Section 13 of the Customs Act was treated as inapplicable on these facts because the loss occurred after assessment and clearance steps, but before delivery. The Bill of Entry could therefore be amended under Section 149, re-assessment was required, and the refund claim under Section 27 could proceed. Customs duty paid on the missing pallet could not be retained once loss in custody was established and the documentary basis for amendment was available.

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Issues: Whether the importer was entitled to amendment and re-assessment of the Bill of Entry and consequential refund of customs duty for goods missing after assessment and before physical delivery.

Analysis: The imported goods were assessed to duty and duty was paid, but one pallet was found missing while still in the custody of the airport custodian before actual delivery to the importer. Section 13 of the Customs Act, 1962 was held inapplicable on the facts because the loss occurred after assessment and clearance steps had been completed, but the Court treated the missing goods as a loss in custody rather than a case where duty remained payable by the importer. Section 149 of the Customs Act, 1962 permitted amendment of the Bill of Entry on the basis of documentary evidence existing at the relevant time. Since the goods were never physically cleared to the importer and the amendment was sought on the basis of existing documents, the Bill of Entry could be amended. On that basis, refund under Section 27 of the Customs Act, 1962 could be processed, and re-assessment was necessary in view of the governing Supreme Court decision.

Conclusion: The importer was entitled to amendment of the Bill of Entry, re-assessment, and processing of the refund claim.

Final Conclusion: The writ petition was allowed because customs duty paid on the missing pallet could not be retained once the loss of goods in the custodian's possession was established and the documentary basis for amendment and refund was available.

Ratio Decidendi: Where imported goods are lost in the custody of the custodian before physical delivery to the importer, the Bill of Entry may be amended on the basis of existing documentary evidence and re-assessment can be directed to enable refund of duty.

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