Duty on damaged shrimps cleared to the domestic tariff area was rejected after they were found unfit for human consumption.

Damaged shrimps cleared into the domestic tariff area were treated as not liable to duty where the Revenue did not dispute that they had become unfit for human consumption after clearance. The Commissioner (Appeals) had granted relief for the damaged portion while confirming duty on the remaining clearances, and the Tribunal found that approach just and proper on the facts. The demand relating to the damaged shrimps was therefore upheld as set aside, and the Revenue's challenge failed.

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Issues: Whether the demand of duty on damaged shrimps cleared into the domestic tariff area was liable to be set aside on the ground that the goods were not fit for human consumption after clearance.

Analysis: The Tribunal noted that the Revenue did not dispute the factual position that the shrimps had become unfit for human consumption after clearance. The Commissioner (Appeals) had passed a detailed order granting relief in respect of the damaged portion, while confirming duty on the remaining clearances. On the facts found, the Tribunal held that the order dropping demand on the damaged shrimps was just and proper.

Conclusion: The challenge to the relief granted on the damaged shrimps failed, and the Revenue's appeal was rejected.

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