Customs duty remission for imported goods lost before clearance cannot be denied by importing Section 22 negligence conditions.

Section 23(1) of the Customs Act permits remission of duty where imported goods are lost or destroyed before clearance for home consumption, and the negligence condition in Section 22(1) cannot be read into that provision. Where goods were lost in a cyclone before an order for home consumption was made, the statutory requirements for remission were satisfied, and denial of remission was unsustainable.

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Issues: Whether remission of customs duty was admissible under Section 23(1) of the Customs Act, 1962 for imported goods lost before clearance for home consumption, and whether negligence could be imported into that provision by reference to Section 22(1) of the Customs Act, 1962.

Analysis: The claim was for remission on goods lost, not for abatement on damaged goods. Section 23(1) permits remission where imported goods are lost otherwise than by pilferage or destroyed before clearance for home consumption. The condition of absence of wilful act, negligence or default, which belongs to the scheme of Section 22(1), cannot be read into Section 23(1). Since the goods were lost in a cyclone before an order for home consumption was made, the statutory requirements for remission were satisfied.

Conclusion: The remission was rightly claimable and the denial of remission was unsustainable, in favour of the assessee.

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