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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 ..... er dispute. 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. 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 ..... it very clear if the 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. ………………………………………………………………………&helli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 962 and also the decision of the Tribunal in the CCE v. Welspun Terri Towels case cited supra. In fine, we allow the appeal with consequential relief." 3. It was also affirmed by the Hon'ble High Court of Karnataka reported in 2012 (280) E.L.T. 374 (Kar.). Learned counsel also drew our attention to the Final 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated the conditions of license issued under Section 58." 5. Learned A.R. drew our attention to the Final Order of this Tribunal in the matter of Sandoz Private Limited V/s Commissioner of Central Excise, Belapur reported in 2014 (308) E.L.T. 617 (Tri.-Mumbai). 6. Heard both sides. We have gone through the submissions made by both 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is entitled to claim remission of the entire duty payable on the said goods imported". Similarly, in the case of Next Fashion Creators Pvt. Ltd. V/s Commr. Of Cus., Bangalore this Tribunal observed that the appellant was eligible for remission of duty which was upheld by the Hon'ble High court of Karnataka where it was held that: "The assessee 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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