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TMI Blog2013 (8) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... in case of the genuine loss occurred due to natural causes in the process of warehousing/re-warehousing of the goods – relying upon IOC vs. Collector of Customs, Bombay [1985 (5) TMI 62 - CEGAT, NEW DELHI] and Bharat Petroleum Corporation Ltd. vs. Collector of Customs, Bombay [1983 (7) TMI 195 - CEGAT, BOMBAY]. The Deputy Commissioner dropped the demand on the ground that loss was only to the extent of 1.13%, the goods were highly susceptible to moisture variation and therefore, the shortage was genuine - there was no allegation of theft, pilferage or clandestine removal - He accordingly granted remission of duty on lost, destroyed or abandoned goods under Section 23(1) of the Customs Act, 1962 – the shortage was genuine and did not occ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . They had executed the B-17 Bond. At the time of re-warehousing of the goods in question to the factory premises of the Appellant at Choudwar, the goods warehoused were found 9509.170 MT thereby short to the extent of 108.830 MT of coke and therefore, duty of Rs.2,29,692/- were sought to be recovered from them under Section 142 read with Section 67 of the Customs Act, 1962 and the Regulation No.4(supra), by enforcing the bond. The Deputy Commissioner of Central Excise Customs, Bhubaneswar Division, dropped the demand on the ground that loss was only to the extent of 1.13%, the goods were highly susceptible to moisture variation and therefore, the shortage was genuine. He further observed that there was no allegation of theft, pilferage o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion does not envisage any remission/abatement of Customs Duty in respect of the quantity of such loss during the transit/transportation, the benefit of remission of duty cannot be extended. It has also been stated that the importer did not take adequate measures to prevent such loss. 4. On the other hand, ld. Advocate appearing for the Respondent has submitted that the difference between the quantity discharged from the vessel and the quantity re-warehoused at their bonded warehouse works out to 48.830 MT only (i.e.9558.000 MT-9509.170 MT) and not 108.830 MT, because the import documents and the draft survey report confirmed to the quantity of cargo to be 9558.000 MT. He has further contended that the Larger Bench of the Tribunal in case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and against public policy is, no doubt, good as far as it goes but, as we have seen, the bond cannot be read or implemented as if Section 23(1) did not apply to warehoused goods. Therefore, notwithstanding the execution of the bond, Section 23(1) will have to be given full effect. We do not accept Shri Raghavan Iyer s contention that goods in transit en route from one warehouse to another are not warehoused goods. We do not find any warrant for this proposition. Looking at the scheme of the Act, it is clear beyond doubt that they continue to be warehoused goods till they are cleared out of the warehouse for home consumption after compliance with the prescribed procedures. In this view of the matter, it is not material (indeed it is not ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Nowhere in the show cause notice, the allegation of theft, pilferage or the clandestine removal of the goods in question had been made. After careful consideration of the findings of the lower authorities and the submission made by the Appellant, we find that the Revenue has not been able to make out a case for not allowing the remission in case of the genuine loss occurred due to natural causes in the process of warehousing/re-warehousing of the goods. In view of these facts and following the ratio of the decisions laid down by the Larger Bench in case of IOC (supra) cited before us and the Tribunals various judgments in respect of the same assessee, and BPCL (supra), we hold that there is no warrant of demand of duty from them. Conseq ..... X X X X Extracts X X X X X X X X Extracts X X X X
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