COMMNR. OF CUSTOMS, MUMBAI vs M/S. MMK JEWELLERS

The Supreme Court addressed the legality of gold wastage claims under Notification No. 196/87-Cus and subsequent amendments, emphasizing that excess manufacturing wastage must be substantiated and cannot exceed prescribed limits. The Court held that the respondent, M/s M.M.K. Jewellers, failed to maintain the required Wastage Account Register, leading to a detected shortage of gold valued at Rs. 28,72,076.48. Consequently, the appeals were dismissed, affirming the customs authorities' findings regarding the misuse of export facilities.