1983 (10) TMI 265

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.... 2. These appeals coming up for order upon perusing the records and upon hearing the arguments of Shri V. Aravamudhan, Advocate for the appellants and upon hearing the arguments of Shri V. Ramachandran, Senior Departmental Representative for the respondent, the Tribunal makes the following order : 3. A consignment of synthetic camphor powder weighing 14350 kgs. imported by the appellants was warehoused on 3-9-1979 in terms of Section 59 of the Act. On 12-8-1980 and 10-9-1980, two out of the three ex-bond Bills of Entry were presented for clearance of 400 cartons in all ex-bond for home consumption when the appellants noted thereon : "the goods are coming under volatile clause and suffering shortage in every carton. So please ....

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.... one of the goods declared as volatile by Central Government under that Section. An appeal against this order was rejected by the Collector of Customs (Appeals), Madras on substantially the same grounds. 4. Before us the learned Advocate for the appellant refers to Section 23(1) of the Act. Section 23(1) provides :- "where it is shown to the satisfaction of the Assistant Collector of Customs that any imported goods have been lost or destroyed, at any time before clearance for home consumption, the Assistant Collector of Customs shall remit the duty on such goods." He urged that in the case of warehoused goods, clearance for home consumption means goods clearance ex-warehouse; and the shortage has been discovered prior to their....

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.... (emphasis supplied). From the above it is seen that the imported goods warehoused are cleared thereafter are cleared for home consumption only when they are taken out of the warehouse on the basis of an order for clearance made by the proper officer. Section 23 of the Act refers to remission of duty if goods have been lost any time before their clearance for home consumption. Thus it is clear that warehoused goods will also be covered by Section 23 of the Act. 6. We find further support for this new stand in the history of Section 23 of the Act. As we have already noted in the case of Bharat Electronics Ltd. v. Collector of Customs, Madras 1983 E.L.T. 653 (C.E.G.A.T.) - Order-in-Appeal No. CD (T) (MAS) 167/81, dated 15-2-1983....