2006 (4) TMI 288

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....ppellant. Ms. Ashima Bansal, DR, for the Respondent. [Order per : Justice R.K. Abichandani, President]. -  The appellant has challenged the order of Commissioner (Appeals) dismissing both the appeals filed against the orders in original under which amounts of Rs. 10,98,867/- and Rs. 16,65,572/- were demanded by way of duty and penalty of Rs. 10,000/- was imposed in appeal No. C/636/0....

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....t no material distinction can be drawn between the loss on account of leakage and loss on account of damage and that the words "for use" in the exemption notifications have to be construed to mean "intended for use". 3. Under the exemption Notification No. 3/2001-C.E., dated 1-3-2001, the Central Government granted exemption to the excisable goods, as mentioned therein subject to relevant ....

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....e subject goods, along with interest. As per the explanation to Rule 6, it has been clarified that the subject goods shall be deemed to have been used for the intended purpose even if any of the quality of the subject goods is lost or destroyed by natural causes, or by unavoidable accidents during transport from the place of procurement to the manufacturer's premises or during handling or storage ....

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.... amount of Rs. 1,66,572/- (Rupees one lac sixty six thousand five hundred and seventy two only) said to have been deposited by the appellant of Appeal No. E/635/06 be treated as pre-deposit for the purpose of hearing that appeal. That appeal will come up for final hearing in its due course. 4. As regards Appeal No. E/636/06, it is directed in that application that there shall be interim st....