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Appeal against Order-in-Appeal confirming demand under Section 45(3) due to loss/pilferage while goods were in custody of custodian. Analysis: The appeal was against the Order-in-Appeal confirming a demand under Section 45(3) of the Customs Act due to loss/pilferage while the goods were under the custody of the appellants as custodian. The Assistant Commissioner had confirmed the demand, leading to the appeal. The party contended that the custodian should not be liable to pay Customs duty under Section 45(3) unless it is unequivocally proven that the goods were pilfered while in custody. However, the party was unsuccessful before the Commissioner (Appeals), prompting the appeal. The appellant's representative argued that the invocation of Section 45(3) required proof of pilferage of the imported goods while in custody of the custodian. The demand of duty under this section arises only when the Department proves pilferage of the goods in custody. The burden of proof lies on the Department, and in this case, it was argued that the burden had not been discharged, thus justifying the challenge against the duty demand. The relevant section of the Customs Act, Section 45(3), was cited to support this argument. The appellant further presented evidence to support their claim, including arranging for a joint inspection/survey of the consignment in question promptly after the alleged shortage was claimed. They contended that the goods were damaged even upon receipt, as evidenced by the entries in the Import Bonding Register showing that the goods were placed in the open damage room. However, the Revenue representative argued that the survey report was submitted late, and the Department was not a party to it. Additionally, it was claimed that the appellant had not produced the damage report upon receipt of the goods. Upon careful consideration of the submissions from both sides, the judge found that the import bonding register, a crucial piece of evidence, was not presented before the authorities below. As this evidence could shed light on the matter and the lower authorities did not have the opportunity to review it, the judge decided to remand the case to the adjudicating authority for a fresh examination. The appellant was granted the chance to substantiate their claim during the new proceedings, ensuring a fair opportunity to present their case. The appeal was disposed of with this decision, emphasizing the need for a re-examination of the issue.
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