TaxTMI 
TaxTMI 
2011 (8) TMI 949
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....s 'the Act') and therefore, the assessee is entitled to the remission of entire duty payable on the imported goods. 2. The assessee is a STPI unit working under EOU Scheme. They imported certain equipments for use in their 100% EOU free of duty under Notification No. 52/2003-Cus., dated 31-3-2003. Due to heavy rain, the goods which were warehoused were substantially damaged. The assessee wrote a letter to the Department seeking remission of duty under Section 23 of the Act, as the goods damaged due to rain were not cleared for home consumption. The said request was not acceded to by the Department. They demanded duty on the imported equipments. There was also proposal for demand of interest. 3. Aggrieved by the s....
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....ion they perform their export obligations. The value of the goods so imported is around Rs. 5 crores. After such import of the goods it was kept in their warehouse. Due to heavy rains in the city, due to seepage of water the entire goods so imported became useless. It is under those circumstances they made an application for remission of duty. The fact that the entire extent of goods which are imported is rendered useless because of seepage of water is not in dispute. The case of the revenue is such a consequence is because of the negligence on the part of the assessee in not taking proper care and protection to the imported goods. Therefore, according to them the case falls under Section 22 and not under Section 23 of the Act and the asses....
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....purposes of this section, the value of damaged or deteriorated goods may be ascertained by either of the following methods at the option of the owner.- (a) the value of such goods may be ascertained by the proper officer, or (b) such goods may be sold by the proper officer by public auction or by tender, or with the consent of the owner in any other manner, and the gross sale proceeds shall be deemed to be the value of such goods. 23. Remission of duty on lost, destroyed or abandoned goods. - (1) Without prejudice to the provisions of Section 13, where it is shown to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs that any impor....
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....ion to the goods should be on account of any accident not due to any willful act, negligence or title of the importer. Having regard to the phrase used, the accident referred to therein is a man-made accident. It has no application to a natural calamity. 9. In so far as Section 23 is concerned, it deals with remission of duty. The condition precedent for application of this Section is the imported goods should have been lost other than as a result of pilferage or destroyed at any time before clearance for home consumption. Then the duty payable on such goods which is lost or destroyed shall be remitted by the authorities concerned. Sub-section (2) of Section 23 deals with a case where the goods is neither lost nor destroyed but the ....