TMI Blog2016 (3) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... rance thereof duty free. Thereafter, at the time of weighment while re-warehousing goods found to be short (in weight), although the number of bales were the same as imported and were intact. The appellant raised debit notes on the supplier for the quantity short received and the supplies reimbursed the same - Held that: the entire quantity of bales of cotton imported was received in the factory w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms duty demands amounting to ₹ 6,63,988/- and ₹ 2,15,235/- were confirmed along with interest, and equal mandatory penalty under Section 114A of Customs Act, 1962 was also imposed. 2. The facts, briefly stated, are as under: The appellant is a 100% EOU. It procured raw material without payment of duty under Notification No. 53/1997-CU dated 3.6.1997. The appellant imported cotton ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in the moisture contained at the time of supply and at the time of receipt of goods in the factory and that realising the same even the CBEC had issued a Circular No. 462/41/93-CU dated 15.4.83 stating that variation up to 1% may be condoned. 4. Ld. DR on the other hand stated that the goods having been short received the duty is recoverable. 5. We have considered the contentions of bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he figure of 1% mentioned in the said letter CBEC. For example if the difference in weight up to 1% was a result of diversion of goods, that would be chargeable to duty. Notification No. 53/97-Cus. exempts the goods imported for use in the manufacture of export goods. The entire quantity of bales of cotton imported was received in the factory intact and there is neither any allegation of diversion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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