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S.K. Pattanaik (Dead) Through Lrs vs State Of Orissa And Ors on 14 December, 1999

17. On a careful reading of Sections 23(1) and 23(2) of the Customs Act both operate in different fields. As per Section 23(2) of the Customs Act when the goods are salvaged it cannot be said that goods were totally lost or destroyed, Though the 2nd Claimant in the Claim Petition has clearly stated consignments were destroyed due to rain. Learned Arbitrator factually found and held that the bonded goods suffered loss and it was a case of destruction rather than of damage simplicitor. Having found that the goods were totally destroyed the learned Arbitrator awarded Duty on the ground of policy of insurance and also relied upon the judgment of the Apex court in S.K.Pattanaik vs. State of Orissa [2000 (115) E.L.T.9 (S.C.)] and the Apex court has held as follows:
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