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TMI Blog1995 (1) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... inly are parts and accessories of computers are missing from the factory. F.I.R. has alleged that the police and the Department of Electronics was also intimated. Police subsequently, advised that the items were untraceable. The appellant thereafter, made an application to the Assistant Collector of Customs under section 23(1) of the Customs Act, 1962 for the remission of duty on these goods. The Customs, however, issued show cause notice to the appellant proposing the recovery of duty of Rs. 21,39,760.00 on the goods, interests on the duty, and the penalty. After considering the cause shown and hearing the appellant, the Assistant Collector confirmed the demand for duty, and for interest to the date of reporting loss on the goods. He impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not as if no one other than an employee of the factory was allowed to enter it or could not have access to the factory. Hence, the possibility of an outsider having stolen the goods cannot be excluded. As a matter of fact, the F.I.R. filed before the police named one employee but nothing was found against him in the police investigation. Secondly, assuming for a moment that the goods were removed by an employee, title to the goods did not pass to such an employee. A distinction has to be made between the appellant company and its employees in this regard. The decision of the West Regional Bench in 1991 (52) E.L.T. 268 is cited by Shri Asthana. The Bench had a case before it shortage of coke caused apparently by natural causes and there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion for domestic consumption. It is evident that the notification has not provided for a contingency of the kind which we are now facing. We are however, unable to argue that the demand for duty has to be deferred for the 10 years period. It is implicit in the notification that the machinery has to be entirely utilized for manufacture of goods for export. This would not be the case with the missing goods. However, we have to be guided by the same principles which show the intention behind the notification that the duty on goods which were removed from the warehouse should be at the depreciated value although at the rate of duty prevalent at the time of import. We note that it is not the case of the department that capital goods have been re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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