THE case against an Army sergeant accused of smuggling CS gas into the country is to be dropped, The Northern Echo has learned.

Michael Grundy, 36, was stopped at North Shields International Ferry Terminal with 957 canisters of the gas on November 27 last year.

He told customs officers that the Army hierarchy "turned a blind eye" to the importation of the weapons as they were better than standard issue. They were sold at a small profit to Army instructors for use in training exercises.

Sgt Grundy's trial began last month at Newcastle Crown Court, but was halted with the jury being discharged after the judge found that the fairness of proceedings had been compromised.

The case was expected to go before a judge who would decide if there was a case to answer. But last night a Customs and Excise spokesman said details of the formal dropping of the case would be given at the court today.

Sgt Grundy, of Catterick, North Yorkshire, had denied being knowingly concerned in the fraudulent evasion of the restriction of the importation of gas.