2024 (4) TMI 792 - AT - Customs

Remission of duty - Application of Section 23 - Whether the appellant are eligible for remission of duties in respect of duty free goods brought into SEZ and the same were destroyed in fire or otherwise - HELD THAT - We find that subsequent to the passing of impugned order by the Adjudicating authority in number of cases it has been held that if the goods are destroyed in SEZ the duty involved on such destroyed goods can be remitted under the Customs Act. In the case of ONGC Petro Additions Ltd. Vs. CC- 2023 (12) TMI 530 - CESTAT AHMEDABAD this Tribunal on the same legal issue that whether the goods destroyed in SEZ is eligible for remission of duty or otherwise. In view of the above decision thee Tribunal has held that the goods destroyed in the SEZ is eligible for remission of duty in terms of Customs Act. However the Adjudicating authority had no occasion to come across the aforesaid decision. Therefore the matter needs to be remanded to decide a fresh. Thus the impugned order is set aside. Appeal is allowed by way of remand to the adjudicating authority.

Summary

Issues involved: Whether the appellant is eligible for remission of duties in respect of duty-free goods brought into SEZ and destroyed in fire or otherwise.

Detailed Summary:

Issue 1: Eligibility for Remission of Duties

The appellant contended that the goods destroyed in SEZ are eligible for remission of duty under the Customs Act. The Tribunal considered various judgments and found that if goods are destroyed in SEZ, the duty involved can be remitted. Referring to the case of ONGC Petro Additions Ltd. Vs. CC, the Tribunal noted that the fire incident was beyond the appellant's control, and there was no negligence on their part. The insurance company's satisfactory grant of the insurance claim was considered as evidence that the fire incident was beyond the appellant's control. The Tribunal also held that the provision for remission of customs duty automatically applies under the Customs Act. It was emphasized that the grant of remission in terms of Section 23 of the Customs Act does not contradict any provision of the SEZ Act. The Tribunal concluded that the appellant had a strong case for remission of customs duty in respect of the destroyed goods in fire.

Issue 2: Tribunal's Decision

Based on the above analysis, the Tribunal set aside the impugned order and allowed the appeal with consequential relief. It was highlighted that the goods destroyed in the SEZ are eligible for remission of duty under the Customs Act. However, since the Adjudicating authority had not considered the relevant decision, the matter was remanded for fresh consideration. Considering the judgment and the specifics of the case, the impugned order was set aside, and the appeal was allowed by way of remand to the adjudicating authority.

This judgment clarifies the eligibility of the appellant for remission of duties in the context of goods destroyed in SEZ, emphasizing the application of relevant provisions under the Customs Act and the absence of negligence on the part of the appellant in such incidents.