Remission of duty on lost, destroyed or abandoned goods
Section 23 of the Customs Act, 1962 deals with remission of duty on lost, destroyed or abandoned goods. [Without prejudice to the provisions of section 13, 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 ho The Act came into force on 01 Feb 1963.
(1) 1[Without prejudice to the provisions of section 13, where it is shown] to the satisfaction of the 2[Assistant Commissioner of Customs or Deputy Commissioner of Customs] that any imported goods have been lost 3 [(otherwise than as a result of pilferage)] or destroyed, at any time before clearance for home consumption, the 2[Assistant Commissioner of Customs or Deputy Commissioner of Customs] shall remit the duty on such goods.
4[(2) The owner of any imported goods may, at any time before an order for clearance of goods for home consumption under section 47 or an order for permitting the deposit of goods in a warehouse under section 60 has been made, relinquish his title to the goods and thereupon he shall not be liable to pay the duty thereon;]
5[Provided that the owner of any such imported goods shall not be allowed to relinquish his title to such goods regarding which an offence appears to have been committed under this Act or any other law for the time being in force.]
Section 23, The Customs Act, 1962 (Act 52 of 1962).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Bharat Petroluem Corporation LTD vs Commissioner of Customs (import), Mumbai
Court's Decision & Legal Precedent
The quantity of goods to be assessed for customs duty purposes is the actual quantity of goods physically imported and received at the place of importation in India (at the shore tanks at Indian ports), not the quantity stated in the bill of lading from the country of export. This is because: (a) the taxable event under Section 12 of the Customs Act is 'importation', which is complete only when goods become part of the land mass within India and are cleared for home consumption; (b) Sections 13 and 23 establish that duty is not payable on goods lost, pilfered, or destroyed before clearance for home consumption; (c) Section 14 requires valuation 'at the time and place of importation'; (d) the Customs Valuation Rules' definition of 'transaction value' refers to goods 'actually imported'; and (e) whether customs duty is levied at a specific rate or on an ad valorem basis does not change this fundamental principle.
On this section: Provides that imported goods lost or destroyed before clearance for home consumption shall result in remission of duty, establishing that duty liability is contingent on successful importation into possession.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
2 instruments name this provision in its title or its text without being made under it.
Questions about Section 23
What have the courts held on Section 23 of the Customs Act?
Bharat Petroluem Corporation LTD vs Commissioner of Customs (import), Mumbai (02 Sep 2015) is the leading judgment on this section among those set out below: Provides that imported goods lost or destroyed before clearance for home consumption shall result in remission of duty, establishing that duty liability is contingent on successful importation into possession.
How do I find court cases under Section 23 of the Customs Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Customs Act 1962 23, section 23 Customs Act 1962, section 23 of the Customs Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Bharat Petroluem Corporation LTD vs Commissioner of Customs (import), Mumbai (02 Sep 2015).
What should I read with Section 23 of the Customs Act, and has it changed?
Its own text turns on section 13 (Duty on pilfered goods), section 47 (Clearance of goods for home consumption), section 60 (Permission for removal of goods for deposit in warehouse), so none of them can safely be read on its own. 2 instruments name it without being made under it, most recently Import of non-standard tapes - instructions. - Circular No.45/2004-Customs, dated 5.7.2004 (2004), then Import of non-standard tapes - instructions. - Circular No.99/2003-Customs, dated 27.11.2003 (2003).
When did Section 23 of the Customs Act come into force?
Section 23 of the Customs Act, cited as Customs Act 1962 23, came into force on 01 Feb 1963, having been enacted on 13 Dec 1962. It is in force as at the date shown on this page.
Other sections of this Act
- 28. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded2145 words
- 2. Definitions1638 words
- 129A. Appeals to the Appellate Tribunal1170 words
- 27. Claim for refund of duty1060 words
- 127C. Procedure on receipt of an application under section 127B1056 words
- 138C. Admissibility of micro films, facsimile copies of documents and computer print outs as documents and as evidence872 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.