Duty liability for material destroyed at fire accident

[chaganti srinivas]

Material destroyed in fire accident at Customs bonded warehouse. Dept. asking for duty payment. any options to come out of the issue?, Section 23 of customs act applicable in this?. Please help.

[Dinesh Gupta]

As you have referred section 23 rightly, an application can be submitted before the AC or DC of customs for remitting the duty on goods destroyed in the warehouse. On applicaiton, they should remitt the duty. In case goods have not been destroyed fully, you may also refer to the provisions of Section 22.

[Haridas Nair]

Was there not an insurance cover?

AI Summary

Remission of customs duty available where bonded-warehouse goods are destroyed by fire via application to customs.
An application may be made to the Assistant or Deputy Commissioner of Customs seeking remission of duty on goods destroyed in a bonded warehouse; where goods are not wholly destroyed, provisions for partial destruction should be considered. Insurance cover is a practical consideration, but the operative remedy described is administrative remission before the customs authority.