Rustam imported a sports car from Japan. He paid the applicable customs duty and an order for home consumption was issued. At the time of actual…

Where it is shown to the satisfaction of Assistant or Deputy Commissioner that any imported goods have been destroyed, otherwise than as a result of pilferage at any time before clearance for home consumption, the duty shall be remitted on such goods. In the given case, since loss of sports car is forever and beyond recovery due to fire, Rustam can claim remission of customs duty upon proving the loss to the satisfaction of the Assistant Commissioner or Deputy Commissioner. Further, since duty has already been paid in the given case, he can claim refund after getting the remission orders. Further, Rustam can claim remission or refund of duty even if he warehoused the sports car and fire occurred there after the payment of duty but before actual clearance therefrom.