1998 (4) TMI 196

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..... y located in the Kandla Free Trade Zone glass bottles without payment of duty in terms of Notification 272/79 to be utilised for packing oil manufactured by it for export. Verification of the stock of bottles in September, 1986 showed a shortage of 1.62 lakhs bottles in the stock received from April, 1983 to 1st September, 1986 approximately 0.3%. The Additional Collector in the order impugned in .....

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..... bottles and had also not intimated the department of the breakage, either during the stocktaking or prior to it and that therefore duty has been rightly demanded and penalty imposed. 4. The percentage of bottles broken is 0.3. It is not unreasonable that such a small fraction of bottles broke during handling or packing the export product. The appellant had, in the reply to the notice specifical .....

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..... showing breakage. That there was an account of bottles kept would be evident from the fact that notice had been issued following the fact that number of bottles (containing the finished product) exported fell short of the bottles received. The bottles in question therefore would be covered by clause (j) of the notification. Duty was therefore not demandable. 5. Appeal allowed. Impugned order set .....

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