2008 (12) TMI 163 - AT - Customs

Goods Damaged in Warehouse assessment / reassessment - Section 22 provides for assessment of imported goods damaged at various stages before their clearance - In the instant case, the impugned goods had been damaged before they had been warehoused - The importer informed the proper officer about the damage suffered only after expiry of warehousing period As per the provisions goods are deemed to be removed after expiry of warehousing period Held that importer is not eligible for the benefit of assessment of the impugned goods on its value in the damaged state.

Summary

In this judgement by the Appellate Tribunal CESTAT, CHENNAI, the case involves M/s. SRF Polymers Ltd. (SRF) importing a consignment of Nylon Filament Yarn (NFY) and warehousing the goods. A quantity of 3250 kgs. of the warehoused goods was not cleared within the one-year warehousing period, leading to proceedings initiated by the Assistant Commissioner of Customs to recover the duty due. SRF sought to clear the goods on payment of duty, but the Assistant Commissioner rejected their request. The Commissioner (Appeals) denied relief as the goods had been damaged before warehousing, and SRF did not properly inform customs of the damage. The Tribunal found that the impugned goods were damaged before warehousing, and the relief under Section 22 of the Act was inapplicable due to the lack of proper notification. The Tribunal dismissed the appeal, stating that the facts did not align with the decision cited by the appellant. The judgement was pronounced on 15-12-2008.