Goods pilfered after the order of clearance by the Custom Officer not the responsibility of Custodian

Last updated: 08 October 2021

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Quick Summary

This case concerns a refund claim for custom duty paid on pilfered goods. The importer argued that the pilferage occurred before the goods were cleared for home consumption, even though the 'out-of-charge' order had been issued. However, the tribunal ruled that once an 'out-of-charge' order is given, customs is no longer responsible for the goods. The importer bears the risk for any subsequent pilferage while the goods remain in the customs area.

Court :
CESTAT, Delhi

Brief :
In M/s. MTI Materials Pvt. Ltd. v. the Commissioner of Customs, Delhi [FINAL ORDER No. 51835/2021 dated September 23, 2021], M/s.MTI Materials Pvt. Ltd ("the Appellant")has filed the current appeal being aggrieved against Order-in Appeal dated April 08, 2019 (''OIA'') in which the refund claims of custom duty paid on pilfered goods imported at Inland Container Depot ("ICD")Tughlakabad, New Delhi Port was rejected on the ground that goods were pilfered after the order of clearance by the Custom Officer.

Citation :
FINAL ORDER No. 51835/2021 dated September 23, 2021

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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