Customs duty remission applies to imported goods destroyed in a fire before home consumption clearance, despite non-insurance.

Imported goods destroyed in a factory fire before clearance for home consumption were eligible for customs duty remission under section 23(1) of the Customs Act, 1962, because the goods had been lost or destroyed otherwise than by pilferage and the department did not dispute the accident. The objection that the goods were not insured did not defeat the statutory entitlement to remission. Reliance on precedents involving similar fire-loss situations supported the assessee's claim, and the customs duty demand could not survive.

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Issues: Whether customs duty remission was available on imported goods destroyed in a fire accident before clearance for home consumption.

Analysis: The imported goods were destroyed in a fire in the factory premises and the department was intimated, with no dispute on the occurrence of the accident. Section 23(1) of the Customs Act, 1962 mandates remission where the Assistant Commissioner or Deputy Commissioner is satisfied that imported goods have been lost, otherwise than by pilferage, or destroyed before clearance for home consumption. The authorities' objection based on alleged non-insurance of the goods did not override the statutory entitlement to remission, and the cited precedents on similar fire-loss situations supported the assessee's claim.

Conclusion: The remission claim was upheld and the demand of customs duty could not survive.

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