Customs duty remission for goods destroyed in an SEZ unit requires a proper application and supporting evidence before merits are examined.

Goods destroyed by fire in an SEZ unit may qualify for remission of customs duty under Section 23 of the Customs Act, 1962, where destruction is by natural cause and the statutory conditions are met. The Tribunal noted that the appellant had not filed the required remission application with supporting documents before the competent authority, so the claim could not be decided on merits at that stage. The matter was therefore remanded to the adjudicating authority for fresh consideration of the remission request in accordance with law and after giving the appellant an opportunity to be heard.

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Issues: Whether customs duty was liable to remission in respect of goods destroyed by fire in an SEZ unit and whether the matter required remand for consideration of a remission application under Section 23 of the Customs Act, 1962.

Analysis: The Tribunal noted its consistent view that where goods are destroyed in an SEZ unit by natural causes, the unit is entitled to remission of customs duty under Section 23 of the Customs Act, 1962. It further found that, in the present case, the appellant had not filed the requisite application before the competent authority seeking remission along with supporting documents. For that limited reason, the matter had to go back to the adjudicating authority so that the remission claim could be examined in accordance with law after giving due opportunity.

Conclusion: The appellant was entitled to seek remission of duty, and the impugned order was set aside with remand to the adjudicating authority for fresh decision after observance of natural justice.

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