2013 (6) TMI 206

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.... of cotton yarn and cotton waste classifiable under Chapter 52 of the Central Excise Tariff Act. They imported raw cotton in bales (raw materials) without payment of customs duty in terms of notification No. 53/97-Cus dated 3.6.97 and notification No. 52/03-Cus dated 31.3.03 for use in the production / manufacture of yarn meant for export and executed B 17 Bond as required under the notification. 3. On import of the raw cotton during the period April, 2002 to August, 2006 in terms of said notification, the quantities were verified by the Central Excise officers and were entered in records and rewarehousing certificates were issued. Thereafter, the said raw material quantities were entered in form IV register and same were issued for manu....

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....ontents that the goods may gain or loss during its transit from the seller to the buyer. As per these rules normally the variation allowed would be 3% unless specifically provided otherwise in the agreements executed between the seller and the buyer. The weight was recorded on provisional basis and the payments were to be made as per the net landed weight at mill site. Again the rules also provided the inspection and weighment of the raw cotton at the mill site by independent agencies and the payments were settled as per those weights certified by such independent agencies.    7. The appellant have submitted that as a result of variation in the moisture contents in raw cotton which was a natural phenomena, only that quantity co....