9911796707
TMI Blog2007 (10) TMI 533X X X X Extracts X X X X X X X X Extracts X X X X ..... , M/s. Sarla Polyester Ltd. is a 100% EOU located at Silvasa and engaged in the manufacture of Polyester Texturised Yarn (PTY) and Polyester Filament Yarn (PFY). The appellants are using duty free imported raw material as also duty free indigenously procured raw material i.e. polyester oriented yarn. 2.2 During the period 14-2-1996 to 16-2-1996, appellant cleared 757 cartons of PTY and PFY for export to Nepal and as per the instructions given to them by their foreign buyer, the same were delivered to M/s. Dooars Transport Pvt. Ltd., after completion of all the formalities. Various godowns of the said transporter were put to search by the Central Excise officers on 19-2-1996 and it was found that out of the total 757 cartons, 358 carto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yed upon them by the intending agent and the Transport company. Drawing out attention to the observations made by the Commissioner and the evidences on record, he submits that it becomes clear that they are not involved in the fraud and the goods were cleared from their factory under proper documentation for export purposes. In this background, ld. Advocate submits that the balance 399 cartons were subsequently redeemed by them on payment of redemption fine and were brought back to the factory under intimation to their jurisdictional Asst. Commissioner of Central Excise and were subsequently exported to Portugal along with other quantity of yarn in the container. As such he submits that having exported the balance 399 cartons, they are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatement has implicated M/s. Sarla Polyester Ltd. The Directors of the said appellant, when contacted during investigations, agreed to pay the duty, if intending agent fail to pay such duties. It is seen that the Commissioner has imposed penalties on M/s. Sarla Polyester Ltd. and have confiscated land, machinery etc., as also seized 399 cartons by observing that they were required to ensure that the goods cleared by them for export had reached the destination as per the undertaking executed by them. He has further observed that Shri Krishna Jhunjhunwala was the responsible Director of M/s. Sarla Polyester Ltd. and by not ensuring that the goods reached final destination, is liable for penalty. 6. We find that there is nothing on recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord to suggest the involvement of M/s. Sarla Polyester Ltd. and in fact they themselves are the victims of the fraud played upon them by the intending agent and the transport company. We accordingly set aside the personal penalty imposed upon M/s. Sarla Polyester Ltd. under the provisions of Rule 2^9 and also under Rule 9(2) and penalty imposed upon Shri Krishna Jhunjhunwala under Rule 209-A. 8. As regards personal penalty of Rs. 1 lakh imposed upon M/s. Dooars Transport Pvt. Ltd., we find that the role of the said transport company has clearly been brought on record and there is sufficient evidence to suggest that the goods were being tampered with and subsequently cleared to the local market with the active connivance of the said tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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