TMI Blog1987 (8) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... eas Bank, 100 wrist watches unaccounted for and fully assembled found in the factory and 100 wrist watches found in the Bank s godown pledged with the Bank were seized as they were considered liable to confiscation by the Seizing Officers. On the scrutiny of accounts maintained by the appellant, it was also alleged that 2828 watches were clandestinely removed by the appellant inasmuch as the above number of watch movements imported by the appellant could not be accounted for against the total number of watch movements imported and the total number of wrist watches produced out of such watch movements. After due process of adjudication, the adjudicating authority has released 100 watches seized from the factory premises as he considered th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground on which these watches have been held to be non-duty paid by the adjudicating authority is that the address of the appellant in respect of these watches given with the Bank is that of his factory and not of his sales office. Learned Advocate has urged that this can hardly form the basis of proving the non-duty paid character of the goods inasmuch as the goods have not been pledged with the Bank by the appellant at two different addresses - one pertaining to his sales office and other pertaining to his factory. 3. Heard learned SDR as well on this plea. She has nothing more to say than what has been stated in the impugned order. 4. I agree with the plea of the learned Advocate for the appellant. Address of the factory by itself wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t peculiar to this factory alone and it was urged before the lower authority that even this wastage can be found in HMT and other Assembly Units in the State and at other places. The learned adjudicating authority, according to the learned Advocate, instead of verifying this fact and arriving a some norms for wastages during the assembly of skd watch movement and final assembly of watches the learned adjudicating authority has merely presumed and surmised that an identical number of watches must have been manufactured and thus clandestinely removed. There is no. warrant for such a presumption. This has been held so by the Supreme Court in the case of Avadh Sugar Mills in 1978 E.L.T. J.172 wherein it has been observed by the Hon ble Court as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icating authority has gone wrong in not comparing the wastage in the appellant s unit with the wastage occurring, if any, in some other units of similar size and similar methods of assembly. Instead of making an effort towards comparison, the learned adjudicating authority has completely ignored the plea of the appellant as rightly pointed out by Mrs. Archana Wadhwa. A demand of duty cannot be fastened on the appellant merely on surmises and unwarranted assumptions. Supreme Court s ruling relied upon by the learned Advocate is very apt in the facts and circumstances of this case. Accordingly, the demand of duty is set aside. 7. In view of the aforesaid discussion on the two points involved, penalty of Rs. 10,000/- imposed on the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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