9911796707
TMI Blog2007 (5) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... red duty free raw materials from other 100% EOUs (which was treated as deemed export for the said supplying 100% EOUs) and also from other DTA units. (b) When the officers visited the unit on 12-7-01 and conducted investigation, it came to light that the raw materials were found to have been cleared clandestinely from the customs bonded warehouse. The clandestine removal was admitted by Shri Dineshbhai Jayantilal Jariwala, partner of the appellant firm in his statement dt. 12-7-01 and reiterated in his statement given nearly after 2 years on 6-6-03. (c) Shri Kanchanlal Champaklal Rana, the recipient of such illegally diverted raw materials also admitted receiving the same on payment of cash without document and without payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of learned advocate for the appellant that the investigation was completed in August 2001 is on the face of it is incorrect. He also submitted that penalty imposed is clearly under Rule 25 and reference to 11AC is only to indicate that the ingredients of fraud, mis-statement, suppression of fact are involved in this case. He also submits that in this case, the raw materials have been procured from other 100% EOUs treated for such supplying units as deemed exports. The excise duty payable on the diverted materials is the aggregate of customs as if they are imported by the appellant. 6. I have carefully considered the submissions from both sides. 7. I find that this is a case of admitted diversion of duty free material received from 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h fraudulent diversion of raw material procured from other 100% EOU (which learned SDR wants to treat it as deemed import). The Commissioner (Appeals) has correctly upheld the demand. In the light of the above, the demand of duty is confirmed. As regards the penalty imposed on both partnership firms and the partner, I hold that the same may not be warranted in this particular case. Therefore, penalty on the appellant firm is set aside. 8. Therefore, I uphold the demand of duty and uphold the penalty imposed on the partner who was admittedly instrumental in fraudulent activities, but the penalty imposed on the appellant firm is set aside. 9. Appeals are disposed off on the above terms. (Dictated Pronounced in Court) - - TaxTMI - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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