9911796707
|
Home
Issues:
1. Duty liability on imported goods abandoned due to damage under EOU Scheme. Analysis: The appellants imported Networking equipments under the EOU Scheme but due to damage caused by seepage of water in the warehouse, they decided to abandon the goods. The main issue was whether the appellants were liable to pay duty on the abandoned goods. The Revenue contended that duty was still applicable, while the appellants relied on various judgments to support their claim that once goods are abandoned and in bond, there is no obligation to clear them by paying duty. The Tribunal examined the applicability of the judgments cited by the appellants, which emphasized that when the title of goods is abandoned, the assessee is not required to clear the goods, and the Revenue cannot recover the duty. The Tribunal found that the goods were bonded, the appellants had relinquished the title due to damage, and the Customs Act did not provide for clearance in such circumstances. Consequently, the Tribunal held that the appellants had the right to relinquish the title without paying duty, and the department could confiscate the goods to recover duty upon sale. As a result of the analysis, the Tribunal granted a full waiver of duty, allowing a stay on duty recovery until the appeal's disposal, even after the expiry of 180 days of the Stay Order. The Tribunal prioritized the case for an expedited hearing due to the significant revenue involved and the prima facie coverage of the matter by relevant judgments. The decision highlighted the distinction between duty liability in cases of abandoned goods under the EOU Scheme, emphasizing the rights of the appellants and the authority of the department to recover duty through confiscation and sale of goods.
|
