2003 (6) TMI 305

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..... der Rule 191BB of the Central Excise Rules. 2. The appellant has got 4 units at Prabhadevi, Sewri, Mumbai and Surat in Gujarat and Dewas in M.P. The appeal is in respect of Surat unit. The appellants have been exporting polyester, cotton, blended fabrics for number of years. They were availing duty exemption benefits. They were importing the required Polyester Staple Fibre (PSF) from 1991 onwards. They procured indigenously Polyester Staple Fibre under Rule 191BB of the Central Excise Rules. The appellants mentioned that they fulfilled the obligation much prior to procurement of PSF indigenously. 3. In terms of Notification 17/90, Rule 191BB was introduced whereunder indigenous PSF was available against advance licence issued under the .....

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..... e permission granted by the Assistant Commissioner on 26-12-90. This was replied to by the appellant by its reply dated 16-12-95 explaining as to how they were not liable for duty. The appellant gave lots of invoices as well as AR4 forms as evidence in support of its claim. They were reflected in pages 49 to 87 of the paper book and AR4 forms at page 141. In spite of it the Commissioner rejected the claim of the assessee and confirmed the show cause notice demanding duty and imposed penalty. Hence, the present appeal. 4. It is contended by the Advocate of the appellant that the demand is totally time-barred inasmuch as the action of the appellant was under the permission dated 26-12-90 by the Assistant Commissioner and until it is cancell .....

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..... at if a proper verification and scrutiny of the records thereunder taken then the appellants would have found to fulfil obligation under DEEC Scheme but when we looking to the order paragraph 21 the Commissioner had held us as follows : It is to be mentioned here that the Mills have not produced any evidence to show that the Polyester Staple Fibre utilised in the manufacture of fabrics already exported by them in discharge of export obligation under D.E.E.C. was of duty paid character and that proper Central Excise duty was paid thereon. It is seen from the record that they were often asked to produce the said evidence however they have not complied so far. As such, the Mills are not entitled to use the Polyester Staple Fibre in question .....

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