1995 (11) TMI 149 - AT - Customs

Summary

Issues:
1. Appeal against the order of Collector of Customs (Appeals) upholding rejection of relief and refund of duty under Section 22 of the Customs Act, 1962.

Analysis:
The appeal before the Appellate Tribunal CEGAT, New Delhi was directed against the order of the Collector of Customs (Appeals) upholding the rejection of the application for relief and refund of duty paid on Copper rods under Section 22 of the Customs Act, 1962. The appellants contended that the claim was rejected on the grounds of non-compliance with Section 22 requirements. The Consultant argued that the damage to the goods was established to the satisfaction of customs authority through various reports and endorsements. The Consultant referred to Section 22 provisions and emphasized the need to establish the damage to the goods to the satisfaction of customs authority, not necessarily at the time of clearance after unloading. The Departmental Representative, on the other hand, highlighted that the refund claim was based on Section 22(1) and was not in line with the abatement of duty on damaged goods as prescribed under sub-section (2) of Section 22. The Departmental Representative also emphasized the necessity of Customs Officer's satisfaction before clearance, citing a Supreme Court judgment.

The Tribunal carefully considered the submissions from both sides and agreed with the Departmental Representative that the refund claim made by the appellants was not in accordance with the provisions of abatement of duty on damaged goods on a proportionate basis as prescribed under Section 22(2). The Tribunal noted that the damage was not brought to the attention of the Assistant Collector at the Port during clearance before the goods were transhipped. Additionally, the survey report, which indicated superficial tarnishing of copper wire rods, was done for insurance purposes and was not filed before the Assistant Collector at the Port of clearance. The Tribunal distinguished the cases cited by the Consultant under Section 116 and Section 23 from the provisions of Section 22, finding no reason to interfere with the order of the Collector (Appeals). Consequently, the appeal was rejected.