Shine & Star India Ltd. imported a consignment from U.S.A (by sea). The value of consignment was - 7,50,000 and total duty payable was -…

The abatement of duty is allowed where it is shown to the satisfaction of the Assistant/Deputy Commissioner of Customs that, inter alia , any imported goods, other than warehoused goods, had been damaged at any time after the unloading thereof in India but before their examination, on account of any accident not due to any wilful act, negligence or default of the importer. Thus, in view of the above-mentioned provisions, the stand taken by the proper officer of refusing the claim for abatement is not valid in law. The duty to be charged on the damaged goods shall be reduced in proportion to the reduction in the value of goods on account of damage. Thus, in the given case, the amount of total duty payable = [₹ 1,50,000/7,50,000] x 1,50,000 = 30,000 The abatement of duty is allowed in case of deterioration only if such deterioration occurs before or during the unloading of goods. Since in this case, imported goods have deteriorated before clearance for home consumption but after unloading, abatement of duty will not be allowed and full duty will have to be paid.