Under the Customs Act, is pilferage of goods in a customs area the same as loss of goods?

No. The expression loss or destruction of goods is treated as being distinct from pilferage, the latter being specifically governed by Section 13. Pilferage of goods in a customs area is not loss of goods simpliciter. If it is a case of loss of goods simpliciter, the provisions of the Major Port Trusts Act would apply having regard to the saving clause under sub-section (1) of Section 45; but as pilferage is dealt with only under the Customs Act, that saving clause would not apply and duty is payable by the person approved under sub-section (1).

Customs Act, 1962 — s.13 — s.45 — Major Port Trusts Act, 1963 — s.42 — s.43 — Indian Contract Act, 1872 — s.148 — Saving clause and non obstante clause — Custodian of imported goods — Duty on pilfered goods — Customs Act, 1962 — s.45(1) — Saving clause — Power to approve a custodian — Held: Under the saving clause in sub-section (1) of Section 45 the Commissioner has no powers to approve a custodian where some other law itself fastens customs duty for pilfered goods on a person; only when no such liability exists can he approve. (¶6) Customs Act, 1962 — s.45(3) — Major Port Trusts Act, 1963 — s.43 — Source, nature and object of the two liabilities — Held further: The liability of the Board under Section 43 is a bailee's civil liability towards the owner of the goods and is conditional; Section 45(3) fastens an independent and absolute statutory liability to pay customs duty to the revenue. (¶6) Customs Act, 1962 — s.13 — s.23 — Pilferage distinct from loss of goods — Held further: Pilferage of goods in a customs area is not loss of goods simpliciter, and as pilferage is not dealt with under the Major Port Trusts Act, the saving clause under sub-section (1) of Section 45 does not apply. (¶6) Customs Act, 1962 — s.45(1) — s.45(3) — Notification dated 11.10.2000 — Valid — Held further: A Notification approving the Port Trust as custodian cannot be found fault with merely because the custody of the goods is otherwise governed by the Major Port Trusts Act. Appeal disposed of. (¶6, 7)

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