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2. The duty demand has been confirmed on a part quantity of broken biscuits arisen in the course of manufacture of Parle-G Biscuits, on job work basis by M/s. Bunty Foods (I) Pvt. Ltd. Penalty has been imposed for non accountal of the broken biscuits as well as for non accountal of sugar syrup in the RG-1 register.

3. We have heard both sides. We find that the Director of M/s. Bunty Foods (I) Pvt. Ltd., had produced private register in which entries were made from 1-4-1996 for broken biscuits. The department has arrived at the percentage of broken biscuits for the entire period in dispute i.e., from October 1992 to March 1997 on the basis of the entries in this register and the percentage of 3.74% has been arrived at.