9911796707
TMI Blog1991 (10) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... ndChina. In the accounting year relevant to the assessment year 1983-84 it had imported polyester yarn weighing 84,960 Kgs. from Hualon Corporation,Taiwan. The goods landed at the Indian Ports in January 1983. The payments in regard to the imported goods were made to the supplier between January to April 1983. The assessee with a view to avoid heavy losses on trading of these goods did not lift the goods from the Customs Authorities. The assessee felt the crunch to such an extent that it was compelled to surrender the goods and accordingly it intimated its decision relinquishing its tide to the imported goods as provided in section 48 of the Customs Act, 1962 to the Customs Authorities in November/December 1983. He submitted that the detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , interest etc. His plea was that the assessee did not take possession of the goods, which it could have done, only by virtue of payment of customs duty, which it did not pay on accountnt of paucity of funds and which is also done considering the fact that the assessee might have to incur huge losses in disposal of the goods. The plea was that the loss having been suffered during the course of trading, in the case of import of the goods, it is clearly a trading loss and did not require any further evidence in this connection. He also referred to the provisions of sections 61, 62 and 63 of the Major Port Trusts Act, 1963 which provided sales of the goods after two months of the goods having passed into its custody disposal of die goods not r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not so cleared for home consumption or warehoused or transhipped within two months from the date of unloading at a customs station or within such further time as permitted by the proper officer or if the title to any such imported goods is relinquished, such goods may, after notice to the importer and with the permission of the proper officer, be sold by the person having its custody. The proviso contains goods of the type of animals, perishable goods, hazardous goods which could be sold at any time and in case of arms and ammunition the same could be sold at such time and place and in the manner as directed by the Central Government. The reading of the above indicates that consequent to the assessee relinquishing its title to the impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice to be published in the Port Gazette or in the Official Gazette, as the case may be and in at least one of the principal local daily newspapers mentioning therein that the goods are liable to be sold by public auction or by tender etc. Section 63 provides the manner in which the sale proceeds shall be applied. The sale proceeds shall be utilized for meeting the expenses of the sale, in meeting any prior liens and claims, payment of rates and expenses of landing, removing, storing or warehousing, payment of any penalty or fine due to the Central Government, payment of any other sum due to the Board. After meeting all these expenses, the surplus, if any, that is remaining shall be paid to the importer, owner or consignee of the goods. On a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed earlier, the act of relinquishment results in the assessee not claiming title to the goods, but this by itself does not mean that the assessee has surrendered even the value of the goods. As observed earlier, the act of relinquishment only provides the Customs Authorities the right to sell the the goods either by public, anction or by tender. etc. and realize the value of the goods customs duty from the actual purchaser other than the assessee itself. It is an undisputed fact that in the year under review i.e., by 31st of March, 1984 the goods have not been sold. It is also not the case of the assessee that time-lag of six months has elapsed from the date of actual sale and within which time the assessee should have made its appl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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