GP Scraps, imported during August 2018, by sea, a consignment of metal scrap weighing 8,000 M.T. from China and filed a bill of entry for home consumption. The Assistant Commissioner passed an order for clearance of good

Remission of Customs duty As per the provisions of section 23 of the Customs Act, 1962 where it is shown to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs that any imported goods have been lost (otherwise than as a result of pilferage) or destroyed, at any time before clearance for home consumption, the Assistant Commissioner of Customs or Deputy Commissioner of Customs shall remit the duty on such goods. Therefore the duty shall be remitted only, if loss has occurred before clearance for home consumption. In the given case, it is apparent from the facts that quantity of scrap received in India was 8000 metric tons and 500 metric tons thereof was lost when it was in custody of Port Authorities i.e., before clearance for home consumption. The loss of 500 M.T of scrap cannot be construed to be pilferage, as loss of such huge quantity cannot be treated as "Petty Theft". Hence, GP Scraps is being advised to take shelter under section 23 of Customs Act, 1962 justifying its claim for remission of duty on the goods short supplied by the Port Trust Authorities as per certificate issued.