1984 (11) TMI 333 - AT - Customs

Summary

Issues:
1. Refund of duty paid on shortages noticed after goods cleared from Customs control.
2. Interpretation of Section 13 of the Customs Act regarding the timing of shortage notification.
3. Validity of the order for clearance and its relation to Import Trade Control Regulations.
4. Determination of the effective clearance date for goods.

Analysis:
1. The case involved a dispute over the refund of duty paid on shortages discovered after the goods were cleared from Customs control. The Assistant Collector rejected the claim, but the Collector of Customs (Appeals) allowed the refund, leading to an appeal by the Collector of Customs, Madras against this decision.

2. The main argument revolved around the interpretation of Section 13 of the Customs Act, which requires shortages to be reported before the proper officer clears the goods. The appellant contended that as the order for clearance was issued before the shortage was discovered, the provisions of Section 13 should not be relaxed.

3. The respondent's counsel highlighted the specific conditions imposed on the clearance of re-rollable scrap, emphasizing the need for weighment and inspection in the presence of Customs officers. The counsel argued that the continuous inspection and weighment process indicated that the goods were not effectively cleared until all necessary checks were completed.

4. The Tribunal analyzed Section 47 of the Act, which governs the clearance of goods for home consumption. It was noted that the proper officer must be satisfied that the goods meet all requirements before permitting clearance. In this case, the Tribunal determined that the goods were effectively cleared only after all necessary inspections and weighments were completed, which occurred after the formal clearance date. Therefore, the claim for refund was deemed maintainable, and the appeal was dismissed.