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TMI Blog2023 (10) TMI 1422X X X X Extracts X X X X X X X X Extracts X X X X ..... pute. The issue is squarely covered by the judgement of this Tribunal in the case Symphony Services Corp. India Pvt. Ltd. V/s Commissioner of Customs, Bangalore [ 2009 (1) TMI 692 - CESTAT, BANGALORE] where this tribunal has taken a view that 'in terms of Section 68, when there is relinquishment of title to the goods imported before their clearance, no duty can be demanded. In these circumstances, in our view, the impugned order cannot be sustained.' The appellant is eligible for the remission of duty - Appeal allowed. - HON'BLE MR. P.A. AUGUSTIAN, MEMBER (JUDICIAL) AND HON'BLE MRS. R. BHAGYA DEVI, MEMBER (TECHNICAL) For the Appellant : Shri Ravi Raghavan, Advocate For the Respondent : Shri K.A. Jathin, Authorised Represen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Customs duty amounting Rs. 54,23,432/- on the capital goods procured without payment of duty which were destroyed in the fire accident alleging that there was an omission on the part of the appellant in not insuring the goods to cover at least the value equal to the Custom Duty as per the Customs Circular No. 99/1995 dated 20.09.1995. Appellant made detailed reply to the said notice and also submitted that on plain reading of the provisions of Sub-Section 1 of Section 23 of Customs Act, 1962, once the Assistant/Deputy Commissioner of Customs is satisfied that the imported goods have been lost on account of being destroyed then the Authority have no option but to remit the duty on such goods. Thus once a subjective satisfaction is admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imported goods are damaged or deteriorated to the extent of the damage or deterioration of the goods, the liability to pay duty abates by operation of law. If the goods imported are lost or destroyed or abandoned then the case for remission of the duty payable is made out. This issue was also considered by this Tribunal in the case of Next Fashion Creators Pvt. Ltd. V/s Commr. Of Cus., Bangalore reported in 2006 (206) E.L.T. 1015 (Tri.-Bang.). Relevant para of the judgment is reproduced below:- 6. A perusal of Section 23(1) reveals that in order to claim remission of duty, the important condition is that it should be shown to the satisfaction of the Assistant Commissioner or the Deputy Commissioner that the imported goods have been lost or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Order of this Tribunal in the case of Laxai Avanti Life Sciences Pvt. Ltd. V/s C.C., C.EX. S.T., Hyderabad-IV reported in 2017 (350) E.L.T. 443 (Tri.Hyd.) and also to the judgment of the Apex Court in the case of Mangalore Chemicals Fertilizers Ltd. V/s Deputy Commissioner reported in 1991 (55) E.L.T. 437 (S.C.). 4. The learned A.R. appearing on behalf of the respondent submitted that there is negligence on the part of appellant in not insuring customs duty. As per the circular they have to ensure that the goods deposited in the warehouses are fully insured at least for a value equal to the customs duty by a comprehensive insurance policy and drawn in favour of the Commissioner of Customs. The learned D.R. also drew our attention at the F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth the sides. There is no dispute that the goods were damaged due to fire took place in the factory premises and the appellant intimated the same to the jurisdictional Authority. The only argument put forth by the revenue is that the appellant was bound to take the necessary precautions to ensure the safety of the goods as per the provisions of the notification 52/2003 and the goods should have been insured not only for the value but for the duty forgone also. The reliance placed on the case laws also are to the effect that since the goods have not been properly insured the question of remission does not arise. 7. In the present appeal the fact that the fire accident took place and intimation given to the department is not under dispute. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see is 100% export oriented unit. It has imported goods without paying duty. If they have performed their export obligations, they were not liable to pay the duty before that obligation could be performed, when the goods were warehoused, there was a fire accident; in the fire accident, the entire goods which were imported were destroyed. It is nodbody s case that there was any pilferage of these goods. Under these circumstances, when the claim of remission is made under Section 23 of the Act, legal requirements to be fulfilled by the assessee to claim remission stands fully satisfied. The Commissioner was wholly in error in denying the said benefit on the ground that the said benefit is not entitled to EOU under the notification and that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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