Page 6 - COMBINED QUESTIONS AND ANSWERS - EDITION 2019 - PART II_Neat

QUESTIONS & ANSWERS
ABATEMENT
Q-1: The abatement of duty on
(i) The damaged goods for any imported goods had been damaged at any time before
or during the unloading of the goods in India
(ii) The damaged goods for any imported and exported goods had been damaged at any
time before or during the unloading of the goods in India
(iii) The damaged goods for any imported goods had been damaged at any time before
or during the transit of the goods
(iv) None of the above
A-1: (i) The damaged goods for any imported goods had been damaged at any time before or
during the unloading of the goods in India
Q-2: The abatement of duty on damaged or deteriorated goods can be granted by:
(i) Assistant Commissioner
(ii) Deputy Commissioner
(iii) Joint Commissioner
(iv) both (i) or (ii)
A-2: iv - both (i) or (ii)
Q-3: If any warehoused goods had been damaged at any time before clearance for home
consumption, the abatement is available only if such damaged is
(i) On account of any accident
(ii) Due to willful act, negligence or default of owner, his employee or agent
(iii) Not due to willful act, negligence or default of owner, his employee or agent
(iv) Both a and c above
A-3: iv - Both a and c above
Q-4: Remission of duty on goods Lost or destruction of goods under Section 23 of the Customs
Act, 1962
A-4: Section 23 applies only when there is no pilferage under Section 13.
(i) Burden of proof is on importer to prove loss or destruction under Section 23
(ii) Section 23 applicable in case of Loss or destruction (including leakage if any) must be
due to fire, natural calamity (like earthquake or bad weather)
(iii) Loss or destruction should be found before clearance of goods from the customs
(iv) Section 23 is applicable even for the goods warehoused.
Q-5: Write a short notes about Section 23 of the Customs Act, 1962
A-5: Section comes into play in case of loss/destruction of imported goods at any time
before their clearance for home consumption. The remission of duty is permissible only in
the case of total loss of goods. This implies that the loss is forever and beyond recovery. The
loss referred to in this section is generally due to natural causes like fire, flood, etc. The loss
of goods may be at the warehouse also. Since Section 23(1) of the Customs Act, 1962 is
subject to the provisions of Section 13 of the Customs Act, 1962, in case the goods have
been pilfered after they have been unloaded but before order for clearance for home
consumption or deposit in a warehouse, Section 13 would apply and the importer would not
be liable to pay the duty.

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