TMI Blog2003 (11) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... June and July, 1999, the appellants had imported various electronic items and have filed Bills of Entry for warehousing. They had warehoused goods so imported in the Customs Public Bonded Warehouse of Central Warehousing Corporation, for the period of one year. Admittedly, theft took place at the Central Warehousing Corporation on 14th/15th November, 1999 and the goods warehoused by various importers, including those warehoused by the appellants, were stolen. The goods were stolen from the warehouse much before the bonding period of one year had expired. The Deputy Commissioner of Customs issued four show cause notices in respect of the goods covered by four Bills of Entry and the respective bonds proposing to demand in all customs duty to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, nevertheless, confirmed the duty as well as interest on the ground that the goods have been cleared from the warehouse and therefore, duty is payable by the importer under Section 72 of the Customs Act. 4. The ld. Counsel appearing for the appellants, while assailing the action of the Department submitted that duty cannot be demanded under Section 72 of the Customs Act in the facts and circumstances of this case since none of the circumstances mentioned in Section 72 are attracted. He contended that in any case there is no duty liability in respect of the stolen goods since Section 23 of the Customs Act, 1962 provides for remission of duty in respect of imported goods that have been lost or destroyed at any time before clearance for h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [2001 (130) E.L.T. 19 (S.C.)]. In support of her contention that liability of the importer continues in terms of bond she referred to the decision of the Supreme Court in the case of S.K. Pattnaik v. State of Orissa reported in 2000 (115) E.L.T. 9 wherein it was observed that the fact was that the liquor was rendered unfit for human consumption and destroyed, after its import, which by itself attracted the levy of duty could not wipe out the liability of the appellant for payment of duty on the excisable goods, after their import in the bonded warehouse. She also referred to the decision of the Madras High Court in the case of Bharat Earth Movers Ltd. v. Collector of Customs, Madras reported in 2001 (129) E.L.T. 580 wherein it answered on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by pilferage and not loss by theft. It was the contention of the Revenue that the appellants are liable to pay duty even in respect of the goods, which are lost in warehouse since the liability continues in terms of bond relying upon the decision in the case of Pashupathi Overseas (supra). In this context, it was pointed out by the Counsel for the appellants that that case referred to by the Revenue, dealt with the refund claim and further more there is a categorical finding by the Supreme Court wherein it was observed that the Assistant Commissioner of Customs was not satisfied that the imported goods had been 'lost or destroyed.' In the instant case, it is an admitted position that the goods have been lost due to theft and accordingly, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods improperly removed from warehouse, etc. - (1) In any of the following cases, that is to say, - (a) where any warehoused goods are removed from a warehouse in contravention of section 71; (b) where any warehoused goods have not been removed from a warehouse at the expiration of the period during which such goods are permitted under section 61 to remain in a warehouse; (c) where any warehoused goods have been taken under section 64 as samples without payment of duty; (d) where any goods in respect of which a bond has been executed under section 59 and which have not been cleared for home consumption or exportation are not duly accounted for to the satisfaction of the proper officer, the proper officer may d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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