Abatement of duty on damaged imports must be considered on its true nature, with effective hearing and fresh adjudication where needed.

A claim for abatement of duty on damaged imported goods under Section 22 of the Customs Act, 1962 must be examined on its true legal character, not treated as a refund claim for shortages. Where the importer shows that the consignment was surveyed after notice to the Customs House before payment of duty, and the record indicates receipt of intimation by the customs office, the claim merits reconsideration. Denial of an effective hearing also justified fresh adjudication. The impugned order was set aside and the matter remanded for de novo consideration after giving the importer an opportunity of hearing.

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Issues: Whether the importer's claim for abatement of duty on damaged imported goods under Section 22 of the Customs Act, 1962 required fresh consideration by the customs authorities.

Analysis: The importer had placed material showing that the consignment was surveyed after notice to the Customs House and before payment of duty, and the record suggested receipt of the intimation by the customs office. The appellate order was also passed without affording an effective opportunity of hearing, and the claim had been mischaracterised as a refund claim for shortages instead of a claim for reduction in assessable value and consequential abatement of duty on damaged goods. In these circumstances, the claim required reconsideration in the light of the applicable legal position on damage to goods and abatement of duty.

Conclusion: The impugned order was set aside and the matter was remanded to the Assistant Collector for de novo consideration of the claim after giving the importer an opportunity of hearing.

Ratio Decidendi: A claim for abatement of duty on damaged imported goods must be considered on its true nature and in accordance with Section 22 of the Customs Act, 1962, and where the importer has a plausible case supported by intimation of survey and denial of effective hearing, fresh adjudication is warranted.

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