Clandestine removal inferred from unexplained shortage of LDPE granules, with duty and penalty upheld on admissions and record evidence.

Shortage and non-accountal of LDPE granules were treated as evidence of clandestine removal where the material was capable of being reprocessed and reused, and the record contained admissions supporting removal. The explanation of wastage or spillage was rejected on the facts, and the confirmed duty demand was upheld. Penalty under Rule 173Q was also sustained, the record indicating that it was minimal in the circumstances.

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Issues: Whether the shortage and non-accountal of LDPE granules justified confirmation of duty and penalty on the basis of clandestine removal.

Analysis: The evidence was found to establish that 3,225 Kgs. of LDPE granules were short and had not been properly accounted for. The explanation of wastage or spillage was rejected because the material was capable of being reprocessed and reused, and the statements on record contained admissions supporting non-accountal and removal. The penalty under Rule 173Q was also considered minimal in the circumstances.

Conclusion: The shortage was held to have been removed clandestinely, and the confirmation of duty and penalty was upheld against the appellant.

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