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TMI Blog2013 (9) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... s under the provisions of Central Excise (removal of goods at concessional rate of duty for manufacture of excisable goods) Rules, 2001 [hereinafter referred to as 2001 Rules] read with notification no.43/2001- CE(NT) dated 26.6.2001 issued under Rule 19 of the Central Excise Rules, 2002. Shri Narinder Manghani, Shri Hansraj Manghani are the Directors of AOPL. The period of dispute in this case is from 2002 to 2006. M/s. AOPL, Bhiwadi discontinued production of perfumes after December, 2006 and started a new unit - a 100% EOU with the same name at D-51, 52, 71 & 72, Hosiery Complex, Phase-II, Noida (hereinafter referred to as 'AOPL', Noida). At the time of discontinuing the export production at Bhiwadi Unit, the AOPL had stock of various i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor of Allure International recorded under Section 14 of the Central Excise Act, 1944, wherein he stated that while AOPL, Bhiwadi were procuring duty free excisable goods for manufacture of perfumes for export, and also procuring duty free alcohol from state excise for the same purpose, most of the time a lot of duty free inputs remained as left, which was transferred to A 1 without any accounting and without payment of duty and these duty free inputs were used for manufacture of perfumes, which were cleared in domestic market. (c) Statement dated 22.3.2010 of Shri Vinay Mishra, Chemist, statement dated 9.4.2010 of Shri Kamla Kant, Manager of AOPL, wherein corroborating the statements of Shri Pankaj Khubani, they stated that A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty under Rule 26 of the Central Excise Rules, 2002 on AOPL, Noida A 1, Bhiwadi, Shri Ha raj, Managing Director, shri Nan, shri Panka Khan, director and other notices. 1.5 The above show cause notice was adjudicated by the Commissioner, Central Excise, Jaipur-I vide order-in-original dated 3.4.2012 vide which the Commissioner confirmed the duty demand of Rs.2,29,68,446/- against AOPL, Bhiwadi along with interest at the applicable rate under Section 11 AB of Central Excise Act and imposed penalty of equal amount on AOPL under Section 11 AC. Besides this, he imposed penalty of various amounts under Rule 26 on A 1, M/s. AOPL, Noida, Shri Hansraj Manghani and other noticees. The penalty imposed on AOPL, Noida, M/s. A 1, Bhiwadi, Shri Hansraj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Shri Hansraj Manghani, Shri Narinder Manghani and Shri Pankaj Khubani, that the appellant have strong prima facie case and hence, the requirement of pre-deposit of duty demand, interest thereon and penalty may be waived for hearing of their appeals and recovery thereof may be stayed till the disposal of the appeals. 4. Ms. Ranjana Jha, learned Joint CDR, opposed the stay applications emphasizing that as regards the allegation of duty evasion of Rs.1,67,82,443/- against AOPL, Bhiwadi is concerned, the same is on the basis of the entries in the raw material issue register of AOPL, Bhiwadi, which has remarks showing issue of duty free inputs to Shri Pankajji, who is partner of A 1, that the issue of duty free materials without payment of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e considered the submissions from both the sides and perused the records. The duty demands of Rs.37,17,905/- and Rs.24,68,098/- are in respect of transfer of duty free materials from AOPL, Bhiwadi to AOPL, Noida, which is a 100% EOU. Even if the inputs involving duty of Rs.37,17,905/- have been unauthorisedly transferred from AOPL, Bhiwadi to AOPL, Noida, a 100% EOU the fact remains that AOPL, Noida being a 100% EOU was entitled to procure duty free inputs against CT-3 certificate. Same logic would apply in respect of glass bottles and unit boxes cleared as scrap to Noida unit. 6. However, as regards allegation of duty evasion of Rs.1,67,82,431/- by AOPL, Bhiwadi by illicitly diverting the duty free inputs to A1, we find that this allegati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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