What is the difference between deterioration and damage of goods
Why abatement of custom duty is only allowed for damages as per section 22 of the Customs Act?
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Damage means physical loss/damage to the goods (eg- the table got cracked in transit) while deterioration means a decrease in quality due to natural reasons (rusting of steel ). Abatement is allowed even for deterioration but only if deterioration has occurred before or during the unloading of goods. Post that, abatement is not allowed but the assessee can relinquish the goods in favour of custom officer u/s 23 and therefore, won’t be liable to pay duty. In damage, the timelimit of occurence of damage is more than in deterioration (i.e. abatement is allowed in damage even after unloading but before actual clearance of goods in case of warehoused goods and in other cases, before examination of goods u/s 17(Assessment section)). One possible rationale behind this difference in the timeline is because if deterioration occurs post unloading, then it is defaut of assessee only as he hasn’t cleared the goods for home consumption on timely basius and it was already known having regard to the nature of goods, that it will be deteriorated due to natural reasons/passage of time.
Yes, correct