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TMI Blog2013 (6) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... a: Being aggrieved with the order passed by Commissioner (Appeals), revenue had filed the present appeal. We have heard both sides duly represented by learned DR Shri N. Pathak for the Revenue and learned advocate Shri R. Santhanam for the respondent assessee. 2. The respondent is engaged in manufacture of cotton yarn and cotton waste classifiable under Chapter 52 of the Central Excise Tariff A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 56,014 Kg of raw cotton and reflected the same as shortages in the private records. 4. On the above basis, they were issued a show cause notice on 25.4.07 proposing confirmation of basic customs duty of Rs.3,76,912/- on such shortage. Such show cause notice culminated into an order passed by the adjudicating authority confirming demand as also imposition of penalty. On appeal, Commissioner (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de in the form of International cotton Association and the Rules framed thereunder allowed variation in weight which was attributed to the moisture contents that the goods may gain or loss during its transit from the seller to the buyer. As per these rules normally the variation allowed would be 3% unless specifically provided otherwise in the agreements executed between the seller and the buyer. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raw cotton imported and also there is no evidence adduced by the department that there was any diversion of the quantity of raw cotton during re-warehousing of the goods in their factory premises. 8. I find force in the above submissions of the appellant which are duly supported by the Rules and Regulations governing the weighment of raw cotton imported by the appellant. I find that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that variation is only to the extent of 3% which stand attributed to various reasons as discussed by the appellate authority. Revenue has also not contested the finding of Commissioner (Appeals) that weighment of raw cotton is governed by provisions of Bylaws made in the form of International Cotton Association and the Rules framed there under which allow variation in weight and such variation ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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