Law: Customs Act, 1969

Section: 196(5),196(8),307A(2)(d)

Customs Act, 1969 (IV of 1969)----Section: 196(5), 196(8) - Rule: 307A(2)(d) - Goods damaged due to fire - Remission of duty and taxes - Denial by adjudicating authority - Appellate Tribunal held that appellant is entitled to the remission of duty and taxes - Appeal was accepted and order-in-original set aside - Reference to High Court - FACTS Through this Reference Application the Applicant Department has impugned order dated 09.11.2015 passed by the Customs Appellate Tribunal in Customs Appeal No. K-1173/2021 and had though proposed various questions of law; however, on 21.09.2020 notice was issued only on Question No. 1 which reads as under:- “1) Whether on the facts and circumstances of the case, the Customs Appellate Tribunal has erred in law to ignore the explicit provisions of rule 307A(1) of SRO 450(l)/200l dated 18.06.2001 which have exclusive relevance to the recovery of Customs Duty and Taxes exempted due to the fact that the Respondent failed to give proper account of 526,733 kg of imported PSF claimed to have been burnt in the wake of arson/riot incidents in December, 2007. therefore, right to avail benefit of SRO 450(I)/2001 dated 18.06.2001 was forfeited under rule 307A(1) supra? ARGUMENTS Learned counsel for the applicant regarding condonation application submits that there is delay only of one day. whereas, the Tribunal has erred in law by accepting the claim of the Respondent in terms of SRO 450(I)/2001 dated 18.06.2Qpi read with Rule 307A(2)(d) (wrongly mentioned rule 307A(1) in the proposed question. He further submits that the Respondent had failed to report the incident of fire within time; hence, is not entitled for the benefit of the duty and tax remission as above. On the other hand, learned counsel for Respondent has supported the order and submits that the incident of fire and damage to the factory is an admitted fact, whereas, the insurance claim was also settled in favour of the Petitioner; hence, no case is made out, whereas, the respondent was entitled for remission of duty and taxes applicable on the damaged goods. DECISION Case is of exceptional nature - Respondent’s factory was destroyed by fire in riots - Tribunal’s order is…

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