9911796707
TMI Blog2009 (9) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... OU and has imported 18 consignments of polyester knitted fabrics and procured from units in Domestic Tariff Area four consignments of the same material duty free under CT-3 certificate. They are required to use the duty free material for manufacture and export garments as per the EOU scheme approved for them; (ii) when the factory premises of M/s. Singh Overseas was visited on 11-02-2003, there was no record relating to receipt, use and disposal of the materials; no items like buttons, zip, printing ink, marking pattern, packing material etc. which could be indicative of manufacture of garments by the said 100% EOU; (iii) Shri Karamveer Singh, proprietor of M/s Singh Overseas in his statements dated 11-2-2002 and 12-2-2002 admitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they filed an interim reply on 26-9-2007 at the time of personal hearing and subsequent intimations regarding personal hearing were not received by them, as a result they were not able to file full-fledged reply and they were not able to cross-examine certain persons whose cross-examination was sought for. Therefore, the order has been passed in violation of principles of natural justice. (ii) They have exported 12 consignments and in respect of the first five consignments, they have received the sale proceeds; two consignments which were exported were returned back; three consignments which were initially sought to be cleared by M/s. Singh Overseas were handed over to M/s. Rajeev Exports for export; in respect of another consignment they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are clearly of sub-standard quality and the same have not been manufactured out of the imported/locally procured duty free materials. In support of this submission, she brought to our notice, for example, some consignments which were exported declaring a value of Rs. 66.50 lacs were found to have been cleared at Dubai declaring only a value of US $ 7,608/- (approximately Rs. 3.5 lacs). She also relies on wide variation in the grammage of garments exported, (arrived at on the basis of weight and quantity in the export documents) and the average weight as arrived at based on the imported consignments. She drew our attention to para 49 of the order-in-original where the weight of the export consignment was found to be in the region of 118-279 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or such a long time looks rather strange. We have also been shown evidence to the effect that the personal hearing intimations were, in fact, despatched from the office of the adjudicating authority. The claim of the learned Advocate that on earlier occasions the communications have been personally served on the appellant and the personal hearing intimations were not served personally may not deserve to be accepted. Intimations have been sent as provided for in the law. Taking totality of the circumstances, we are not, prima facie, convinced of the violation of principles of natural justice. On merits of the case, prima facie, we find that on the date of visit by the officers, there was no evidence for any manufacturing activity; that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g all these into account, we dispose of the stay petition on the following terms : (a) M/s. Singh Overseas is directed to deposit a sum of Rs. 1 crores (rupees one crore only) towards duty and a sum of Rs. 10 lacs (rupees ten lacs only) towards penalty within eight weeks from today; (b) Shri Krishan Kumar is directed to deposit a sum of Rs. 10 lacs within eight weeks from today; and (c) M/s. Rajeev Exports is directed to deposit a sum of Rs. 10 lacs (rupees ten lacs only) within eight weeks from today. Subject to pre-deposit of amounts mentioned above, we waive pre-deposit of balance amount of duty and penalty by M/s. Singh Overseas and penalties by other two applicants. It is made clear that in the event of failure to c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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