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2013 (8) TMI 509 - AT - CustomsRemission of Duty - Shortage of Goods - Section 23 of the Customs Act, 1962 - Assesse had imported a consignment of Chinese Metallurgical Coke and cleared the goods for re-warehousing on the provisionally assessed warehousing bills of entry for the purpose of manufacture of Charge Chrome in their factory - Section 23 of the Customs Act, 1962 was to be extended also to the assesse in case of Transit loss during the transfer of goods from one warehouse to another - Held that:- Revenue had not been able to make out a case for not allowing the remission in case of the genuine loss occurred due to natural causes in the process of warehousing/re-warehousing of the goods – relying upon IOC vs. Collector of Customs, Bombay [1985 (5) TMI 62 - CEGAT, NEW DELHI] and Bharat Petroleum Corporation Ltd. vs. Collector of Customs, Bombay [1983 (7) TMI 195 - CEGAT, BOMBAY]. The Deputy Commissioner dropped the demand on the ground that loss was only to the extent of 1.13%, the goods were highly susceptible to moisture variation and therefore, the shortage was genuine - there was no allegation of theft, pilferage or clandestine removal - He accordingly granted remission of duty on lost, destroyed or abandoned goods under Section 23(1) of the Customs Act, 1962 – the shortage was genuine and did not occur due to negligence, such losses occurred due to natural causes like the nature of the goods being susceptible to moisture, weigh-bridge difference and handling loss due to loading and unloading of the materials at both ends - There was no warrant of demand of duty from them - the Appeal of the Revenue was dismissed and the Order passed by the Commissioner (Appeals) is upheld – Decided against revenue.
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