2010 (1) TMI 1024

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..... atel and is a 100% EOU. During the surprise visit on 9-2-01, the officers found shortage in the stock of yarn to the tune of 10,049 kgs. On the same day, Shri Patel, proprietor admitted shortage and also admitted that he has sold the yarn @ Rs. 60 per kg. to Shri Bhupendra Bhai Mistry in January, 2001 on cash basis. Shri Mistry, yarn broker admitted that he had received the same without payment of .....

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..... nd no penalties are imposable. Revenue is in appeal against the decision of the Commissioner (Appeals) holding that no interest is payable and penalties are not imposable. 2. No one is present for the appellant. Heard the learned JDR. The learned JDR submitted that this is a case of clandestine removal of raw materials by a 100% EOU and therefore the demand of interest, invocation of extended pe .....

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..... removal. In this case, the date of actual removal is not available even though both the buyer and seller admitted that the sale, was made in January. For the purpose of calculation of limitation of 5 years, it is important to know the date of actual removal. In the absence of date of actual removal, the only option left would be to treat this as a case of shortage. If this is applied in this case, .....

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