TaxTMI 
TaxTMI 
2023 (10) TMI 1422
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.... Private bonded warehousing license was also given under Section 58 of the Customs Act, 1962 and inbound manufacturing sanction was given under section 65 of the Customs Act, 1962. As part of their day-to-day activities, appellant imported raw material from overseas agencies and indigenous suppliers without payment of duty. No CENVAT credit is availed and appellant used to export finished goods without payment of duty to various countries and also undertake DTS sales on payment of applicable duties. Facts being so a fire accident occurred in appellant's premises on 18.10.2008 causing destruction of capital goods as well as duty paid goods which is procured without payment of duty under EOC scheme which was intimated to the Department and co....
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....ion the appellant is entitled for remission of duty. The learned counsel appearing on behalf of the appellant submitted that the issue is squarely covered by the judgement of this Tribunal in the case Symphony Services Corp. India Pvt. Ltd. V/s Commissioner of Customs, Bangalore [2009 (245) E.L.T. 661 (Tri.-Bang.)] where this tribunal has taken a view as under:- "6.1 If the goods which have been imported become unusable for some reason or other, then, we have to take it that they have been destroyed. In fact, a wider interpretation should be given to the word „lost‟ or „destroyed‟. It is also a fact that the goods are still in the warehouse and they have not been cleared. Hence, in our view, Section 23 is cl....
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....e consumption. If the loss is because of pilferage, remission would not be applicable. In the instant case, the goods have been warehoused. Goods which are warehoused undoubtedly have not been cleared for home consumption. In the Jindal Vijayanagar case, we have held that remission of duty is applicable to warehoused goods. The other case laws relied on by the learned Advocates are also relevant. Revenue has not shown that the goods have been destroyed because of pilferage. The fact of the fire accident is not under dispute. Therefore, all the conditions for claiming remission under Section 23(1) have been fulfilled. The appellants are entitled for the entire duty paid on the goods. The Pasupathi case, relied on by the Adjudicating Authorit....
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....ter of Tibco Software India Pvt. Ltd. V/s Commissioner of C.Ex., Pune-III [2019 (370) E.L.T. 344 (Tri.-Mumbai)]. Relevant para of the judgment is reproduced below:- "5.4 Both Sections 58 and 65 stipulate that person depositing the goods in terms of the above section in private bonded warehouse or undertaking operations as specified by the said section, is bound by the conditions specified in the said licenses and also by the Bond executed under Section 59. One of the conditions prescribed by the license is that the appellants shall insure the goods deposited in the warehouse against pilferage, theft, fire accident and other natural calamities. Even C.B.E. & C. Circular No. 99/95-Cus. states - "(v) It may be ensured that th....
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....pute. Section 23 Sub-Section 1 reads as follows: 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 imported goods have been lost (otherwise than as a result of pilferage) or destroyed, at any time before clearance for home consumption, the Assistant Commissioner of Customs or Deputy Commissioner of Customs shall remit the duty on such goods. Thus as per the above provisions when the Assistant/Deputy Commissioner of Customs is satisfied that the imported goods have been lost, the question of demanding duty on these goods does not....