Clandestine removal claim rejected where unreliable statement and consistent yield figures failed to support customs duty demand.

Allegations of clandestine removal of imported waste paper failed where the only supporting material was a company official's statement and that statement was found unreliable. With the evidentiary foundation removed, the customs duty demand based on the impugned order could not stand. Consistent yield figures across several years further supported the explanation that any shortage resulted from normal process loss rather than clandestine disposal of raw material. The impugned order was therefore unsustainable on the available evidence.

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Issues: Whether the allegation of clandestine removal of imported waste paper was sustainable on the evidence, and whether the demand of customs duty based on the impugned order could stand.

Analysis: The only material relied upon for the allegation was the statement of a company official, and once that statement was discarded as unreliable, the evidentiary basis for clandestine removal disappeared. The consistent yield figures over several years also supported the explanation that any shortage was attributable to normal process loss rather than clandestine disposal of raw material.

Conclusion: The allegation of clandestine removal was not proved and the impugned order was unsustainable.

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