9911796707
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Issues:
1. Whether duty should be demanded for shortages in consignments of VFC tobacco purchased by the petitioner for processing. 2. Determination of the percentage of loss on account of driage and natural causes in the consignments. 3. Validity of the Collector's decision to fix the loss at 3% and the subsequent affirmations by appellate and revisional authorities. 4. Consideration of instances of higher loss percentages allowed in similar cases. 5. Adequacy of reasons provided by the Collector for fixing the loss percentage. 6. Rejection of petitioner's claim based on the absence of evidence of illegal removal of tobacco. 7. Overall justification for dismissing the Writ Petitions challenging the duty demand and loss percentage determination. Analysis: The petitioner bought two consignments of VFC tobacco for processing, which were found short by 3.62% and 3.38% after processing. The Collector issued a show cause notice for duty demand on the shortages, which the petitioner attributed to natural causes. Despite explanations, the Collector allowed 3% driage as reasonable and demanded duty for the balance. The Central Board of Excise & Customs and the Central Government upheld this decision, considering it normal for the area's processing cases, leading to the dismissal of the petitioner's appeals and revisions. The key issue revolves around determining the acceptable percentage of loss due to driage and natural causes in the consignments. The Collector's decision to fix the loss at 3% was supported by the appellate and revisional authorities, emphasizing the normal range of loss in the area. The courts found no grounds to interfere with this factual determination, highlighting the Collector's expertise in handling similar cases and the absence of evidence to warrant a higher loss percentage for the petitioner. The petitioner's argument for allowing higher loss percentages based on cited instances was rejected as the material was not presented before the relevant authorities earlier. The courts emphasized that factual determinations must be based on the specific circumstances of each case, and the absence of identical facts in cited instances led to the rejection of this contention. Moreover, the Collector's decision-making process in fixing the 3% loss was deemed reasonable and not arbitrary, considering the inherent uncertainties in estimating such losses. Additionally, the rejection of the petitioner's claim due to lack of evidence of illegal removal of tobacco was upheld. The courts emphasized that determining the quantum of loss is within the authorities' discretion, subject to review through appeal and revision processes. The availability of these avenues served as a safeguard against arbitrariness, leading to the dismissal of the Writ Petitions challenging the duty demand and loss percentage determination.
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