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TMI Blog1991 (9) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... M.V. OCEAN STAR from Yugoslavia declaring at a CIF price of US $ 477.44 per Metric Ton and for the whole consignment of 1850 MTs which is equivalent to Rs. 1,10,27,016/-. On arrival of the goods it was noticed by the appellants that the goods were damaged on the Voyage due to bad weather and other causes. Accordingly, they claimed 50% abatement in value of the goods. A report of Surveyors was also filed in support of their contention that the Cargo was partly damaged. In a letter dated 17-10-1985 addressed to the Assistant Collector it was stated that due to faulty loading of the Cargo in the Vessel approximately 300 tons of the Cargo was lost and the whole Cargo had depreciated in value by about 60% due to mixing of the Cargo with foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e proportionate reduction in value to the extent of 30% would, therefore, be reasonable and, accordingly, he ordered for abatement of duty on account of damage/deterioration of the goods by reducing the value of the goods to the extent of 30% under Section 22(3)(a) of the Customs Act, 1962. This view was confirmed by the Collector (Appeals). Hence, this appeal. 3. Shri L.P. Asthana, learned Counsel, appearing for the appellants, submitted that neither copy of the test report relied upon by the Department was supplied to the appellants nor the sample taken for analysis could be considered as representative of the whole lot. He said that percentage of contamination whether 6.4% or 10% is immaterial as in any case it would render the consign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs Act. He contended that part of the contract is yet to be completed and the rebate given by the Supplier works out only 27% if the entire contract is taken into consideration. He said that the goods have not become useless and in fact they have been taken in use and the Department was justified in giving proportionate abatement based on chemical report to the extent damage was caused. 5. In reply, Shri Asthana said that credit was given by the supplier only for damaged goods and he drew our attention to the Credit Note where it was specifically mentioned that Credit Note for damaged Material . The plea of Credit Note was taken at the earliest stage as can be seen from the order of the Deputy Collector but same was not considered w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instance, the Department was justified in giving 30% reduction in value for the purpose of giving abatement under Section 22 of the Customs Act/Under these circumstances, we do not find any infirmity in the orders passed by the authorities below and, accordingly, the appeal filed by the appellants is hereby dismissed. [Assent per: P.C. Jain, Member (T)]. - I agree with the conclusion reached by my learned brother Shri G.A. Brahma Deva for different reasons set out below :- 6.1. The appellants stated before the original authority that the main impurities were soda ash, sulphur and iron fillings etc., and that too around 9 to 11%, that to remove iron from the P.V.C. resins and to make P.V.C. pipes, an additional cost at Rs. 6.30 per kg. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out; greater probability being in sweepings, torn bags and slack bags in the descending order. Even if we take 50 per cent depreciation in value, as contended by the appellants, this cannot be extended to the 43 per cent bags found in sound original condition. This contention can be extended to the goods which are liable to contaminate. On that basis, about 26 to 27 per cent (i.e. 50 per cent of 53 per cent bags) would be the overall depreciation in value. On the basis of available evidence, we are of the view that 30 per cent overall depreciation allowed by the lower authorities is quite reasonable, even though the lower authorities have arrived at that level of depreciation on the basis of test reports of the contaminated goods. 9. As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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