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Issues:
Refund of excess duty paid on survey shortages; Interpretation of Sections 13 and 23 of the Customs Act, 1962. Analysis: The appellants sought a refund of duty paid on goods with shortages discovered after clearance for home consumption. The claim was rejected based on Section 13, which requires shortages to be reported before clearance. The Collector of Customs upheld the rejection citing Section 13 and the condition of notifying shortages before clearance. The appellants argued physical impossibility of surveying before clearance but failed to meet Section 13's requirements. The Tribunal emphasized the categorical nature of Section 13, stating that the appellants could have safeguarded their interests by delaying assessment or clearance. The appeal was dismissed due to non-compliance with Section 13. In response to the argument that Section 23 should apply, the Tribunal referenced a previous case to distinguish between "lost" and "pilfered" goods. Section 13 deals with pilfered goods where duty liability may revive if goods are restored, while Section 23 pertains to remission of duty on lost or destroyed goods. The Tribunal clarified that "lost" in Section 23 does not cover pilferage, emphasizing that duty liability continues for pilfered goods under Section 13. Without evidence of irretrievable loss, the Tribunal found no basis for a refund under Section 23. The presence of intact packaging upon landing did not prove non-arrival of goods, and the absence of conclusive evidence precluded a refund claim. The Tribunal reiterated the claimant's responsibility to establish entitlement to a refund, emphasizing that mere possibilities of non-arrival or loss were insufficient. Ultimately, the appeal was dismissed for failure to establish a valid refund claim under the circumstances of the case.
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