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TMI Blog2010 (2) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... d out of imported raw material and the goods produced from the indigenous raw material. There was also no evidence on record to show that the respondent had utilized any part of the imported raw material and had got them cleared in the DTA. Thus, in the absence of any proof on part of the Revenue that goods for sale in DTA were manufactured out of the imported raw material, the respondent cannot be held liable to pay duty in terms of Notification No. 2/95 - 58 of 2006 - - - Dated:- 8-2-2010 - Ashutosh Mohunta and Mehinder Singh Sullar, JJ. Shri Sanjeev Kaushak, Sr. Standing Counsel., for the Appellant. Shri M.P. Devnath, Advocate, for the Respondent. [Judgment per: Ashutosh Mohunta, J.]. - The Revenue has impugned the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al action. Three notices were served upon the respondent in this regard. The Additional Commissioner vide order Annexure P-1 confirmed the demands raised in three show cause notice. 3. The respondent filed an appeal before the Commissioner (Appeals), who allowed the appeal vide order Annexure P-2 and held that the manufacturer has maintained separate accounts of the imported cotton (imported yarn) and the indigenously purchased yarn and it could easily be identified, whether the yarn has been produced out of the imported cotton or from indigenous raw material. It was also held that only 317.520 kgs. of yarn was manufactured out of the imported raw material, of which proper duty has already been discharged and the balance quantity has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ured out of the imported raw material and hence it cannot be said that the respondent has tried to gain any undue advantage. 7. As far second question is concerned, the Commissioner (Appeals) as well the Appellate Tribunal have both returned categorical finding of fact that the respondent had maintained separate accounts regarding the goods manufactured out of imported raw material and the goods produced from the indigenous raw material. There was also no evidence on record to show that the respondent had utilized any part of the imported raw material and had got them cleared in the DTA. Thus, in the absence of any proof on part of the Revenue that goods for sale in DTA were manufactured out of the imported raw material, the respondent ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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