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Bharat Electronics Ltd. vs Collector Of Customs on 15 February, 1983

4. While rebutting these submissions learned D.R. has mentioned that the remission of duty in terms of section 23 of Customs Act, 1962 is permissible only for the goods lost or 4 C/51646 /2019 [SM] destroyed but for the pilfered goods the remission is prohibited by the Legislature. For such goods Section 13 only shall be applicable. But only in a situation where the goods are noticed to be pilfered prior the out charge order is issued by the proper Custom Officer. Since in the present case, the said OOC (out of charge order) was already issued prior the appellant noticed pilferation, the adjudicating authorities have rightly rejected the claim. While laying emphasis upon the decision in the case of Bharat Electronics Ltd. vs. Collector of Customs reported in 1983 (E.C.R.)
Customs, Excise and Gold Tribunal - Tamil Nadu Cites 14 - Cited by 6 - Full Document

Zenith Bearing Enterprises vs Collector Of Customs (Acc) on 9 February, 1994

12. Coming to the another submission that irrespective of applicability of Section 13 importer was still not liable as the goods were still in the possession of the custodian (CONCOR) even after the order of clearance (OOC) was passed. I am not in agreement with that submission as I am of the opinion that once an out of charge order has been given it will clearly indicate that the customs are no longer interested in keeping the goods and the importers are at liberty to clear the goods. If the importer continues to keep the goods in Custom area under the custody of the custodian, the Legislature has intended that it is at their own risk and responsibility, in so far as duty liability is concerned in respect of the pilferage. I draw my support from the decision in the case of Zenith Bearing Enterprises (supra) as relied upon by the learned D.R. Since the goods pilfered and stolen has to go into home consumption, duty has to be paid by the importer. From both these provisions, it is clearly apparent that Legislature has thought it fit to consider remission of duty held in the Customs area only for the period required for completion of Customs formalities and not beyond that. Appointment of custodian is mainly for the purpose of getting the customs 12 C/51646 /2019 [SM] formalities completed. Hence, his responsibilities also continued only to the stage when out of charge order for clearance either for home consumption or for depositing in warehouse is passed by the proper officer. Custodian is not suppose to take the custody of goods treating the entire custom area as a warehouse. If the importers still choose to keep the goods in the custom area, it is possible only at the importers' own risk.
Customs, Excise and Gold Tribunal - Mumbai Cites 27 - Cited by 1 - Full Document
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