9911796707
TMI Blog2009 (4) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... Grey Fabrics admeasuring 500839 Sq. mtrs. diverted to local market duty free valued at Rs. 97,66,341/- are liable to confiscation under Rule 209 read with Rule 173Q of the Central Excise Rules, 1944. He confirmed demand of Central Excise duty of Rs. 83,19,934/- together with interest and imposed equivalent penalty of Rs. 83,19,934/- on M/s. Umaji Overseas, Bhiwandi. He also confirmed the demand of Customs duty of Rs. 38,02,585/- together with interest and imposed equivalent penalty of Rs. 38,02,585/- on M/s. Umaji Overseas, Bhiwandi. He also imposed penalty of Rs. 10,00,000/- under Rule 209A of the Central Excise Rules, 1944 and imposed penalty of Rs. 3,00,000/- under Section 112 of the Customs Act, 1962 on Shri Pinkesh Parasmal Jain. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dmitted that goods were stored in nearby godown although these were shown to be cleared to M/s. Devyani Processors Pvt. Ltd. These facts lead to conclusion that goods in question have not at all gone out of the Bhiwandi, but in the guise of clearance to another EOU, the same were sold in DTA without payment of duty and sale proceeds have been collected in cash as is admitted by Shri Pinkesh Jain as well as evident from the bank statements pertaining to other two units floated by Shri Pinkesh Jain. The fact even as on today is that in respect of four consignments no rewarehousing certificate has been produced by the applicants. Shri Prakash Chovatia, Director of M/s. Devyani Processors Pvt. Ltd. has denied the receipt of grey fabrics. The ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ificate not received or certificate being forged, the duty liability lies with the consignor. 6. As regards the Customs duty demand on the yarn consumed in the quantities of grey fabrics sold in the local market, the Commissioner in paras 53 and 54 after examining in the detail the records maintained by the applicants, has come to the conclusion that the imported yarn procured duty free was used in the manufacture of the impugned grey fabrics as the yarn procured indigenously was not sufficient to manufacture the total quantity of grey fabrics shown in the invoices. This has been contested by the learned Advocate of the applicants. According to him, these goods have been manufactured from the raw material procured locally only. We are not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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