Customs duty abatement under Section 22 is unavailable once imported goods are cleared for home consumption.

Section 22 of the Customs Act, 1962 permits abatement of customs duty only where damaged or deteriorated imported goods can be reappraised or sold while still under customs control. Once goods are cleared for home consumption and leave customs control, those statutory methods are unavailable, and the goods cease to fall within the relevant definition of imported goods under Section 2(25). Accordingly, a claim for refund or abatement cannot be maintained after clearance; the claim must be established while the goods remain under customs control.

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Issues: Whether refund or abatement of customs duty could be granted under Section 22 of the Customs Act, 1962 after the imported goods had been cleared for home consumption and had gone out of customs control.

Analysis: Section 22 contemplates abatement of duty on imported goods to the extent of reduction in value caused by damage or deterioration, and the reduced value is to be ascertained either by appraisement by the proper officer or by sale by the proper officer. Once the goods have been cleared out of customs control, neither method is available. The definition of imported goods in Section 2(25) of the Customs Act, 1962 excludes goods cleared for home consumption, so the claim had to be established while the goods remained under customs control.

Conclusion: The claim under Section 22 was not maintainable after clearance of the goods, and the appeal failed.

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