Per T.K. Jayaraman :

This appeal is against the Order-in-Appeal No. 106/02-Cus. dated 15.11.2002 passed by the Commissioner of Customs Central Excise (Appeals), Bangalore.

2. The appellants are 100% E.O.U. manufacturing 'GHERKINS' for export. The processed 'GHERKINS' are packed in drums along with vinegar. The vinegar is imported duty free in terms of Customs Notification No. 53/97-Cus. dated 3.6.97. In the course of transportation from the factory to port of exportation, the processed gherkins got damaged due to accident at the Inland Container Depot at Bangalore. The lower authority demanded duty under Section 72 of the Customs Act. The Commissioner (Appeals) upheld the lower authority's order in the impugned order. The appellants strongly challenge the impugned order.

3. Smt. Komala Chowdary, learned Consultant appeared on behalf of the appellants and Shri R.V. Ramakrishnappa, learned JDR appeared for the Revenue.

4. The learned Consultant urged the following points:-

(1) There is no authority for demanding customs duty on the goods manufactured in India.

(2) The appellant has not done anything for demand of duty under Section 72 of the Customs Act. None of the situation mentio