Without prejudice to the provisions of section 13

where it is shown to the satisfaction of AC/DC

that any imported goods have been lost or destroyed,

(otherwise than as a result of pilferage)

at any time before clearance for home consumption

AC/DC shall remit the duty on such goods.

 

Note:-

  • The loss referred to in this section is generally due to natural causes like fire, flood, etc.
  • Even loss at warehouse covered

 

Difference between Section 13 and Section 23(1)

Section 13

Section 23 (1)

It covers

Pilferage of goods

 

It covers

Loss and destruction of goods

(except pilferage)

Duty is not payable at all

Duty is payable but is remitted(waived)

Period of pilferage between

their unloading and order for clearance is covered

 

Anytime before actual clearance for home consumption.

 

Pilferage is not to be proved

Loss/destruction shall be proved to AC/DC

If goods are restored, no duty payable

No such provision, as lost or damaged goods cannot be restored

  1. Indirect Tax
  2. Customs
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.