Transitional deemed credit requires verifiable stock particulars; vague "in transit" declarations fail, but penalty may still be set aside.

Transitional deemed credit under the textile scheme is available only when the stock declaration clearly shows eligible goods in stock, in process, or in finished products on the relevant date, with particulars sufficient to verify the premises and stock position. A declaration referring only to grey fabric "in transit" without the address of the premises or other identifying details failed that requirement, so deemed credit was denied. The note also records that, although the credit was inadmissible, the facts did not justify punishment, and the penalty was set aside.

---

---

Issues: (i) Whether deemed credit under the transitional textile provisions was admissible in respect of grey fabric shown as in transit without sufficient particulars in the stock declaration; (ii) Whether penalty was justified in the facts of the case.

Issue (i): Admissibility of deemed credit depended on the goods being in stock, in process, or contained in finished products as on the specified date, with a written declaration giving the requisite particulars so the stock could be verified. A declaration that merely referred to goods in transit, without the address of the premises or other identifying particulars, did not satisfy the notification requirements and prevented verification of the stock position.

Conclusion: Deemed credit was correctly denied on the goods shown as in transit.

Issue (ii): Although the credit was not admissible, the circumstances did not justify penal action. The omission was treated as not warranting punishment, and the penalty was set aside.

Conclusion: Penalty was not sustainable and was set aside.

Final Conclusion: The denial of deemed credit was upheld, but the punitive element was removed.

Ratio Decidendi: Transitional deemed credit is available only when the stock declaration clearly establishes the existence and verifiability of eligible goods on the relevant date, and penalty may be waived where the facts do not disclose a case for punishment.

---