9911796707
TMI Blog2015 (9) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... Made Ups Dupattas classifiable under Chapter 61 & 62 of the Central Excise Tariff Act, 1985. Acting upon an intelligence that the main noticee was diverting and illicitly clearing the raw materials procured duty free and their finished product in DTA by resorting to under-valuation, on 12.07.2004, the Central Excise officers visited the factory premises of the main noticee. During the course of investigation, it was found that M/s Nandan Synthetics Pvt.Ltd. (100% EOU), supplied the raw material Polyester Knitted Man Made Fabrics to the main noticee for manufacturing their final product under the cover of CT-3 certificate. A show cause notice dt.09.07.2007 was issued proposing demand of duty along with interest and penalty on the main notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther hand, learned Authorised Representative on behalf of the Revenue submits that it is clearly evident from the statement that the appellant was not sure as to who arranged the transport for supply of the raw materials, but the proprietor of the main noticee M/s Monarch Creative Pvt.Ltd. stated that the appellant had arranged the transport. Thus, there is an apparent contradiction in the statements of both the parties and therefore, it is presumed that the appellant had knowledge and actively involved in diversion of goods. 5. On rejoinder, the ld.Advocate for the appellant submits that in last statement dt.17.03.2007, the proprietor of the main noticee admitted that the earlier statement was wrong on this issue. 6. After hearing both t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other relied upon records. It is seen that the procurement of the raw materials and usage of the same have been shown by the unit in their records. The following evidences are available on record to show the receipt of raw materials i.e. polyester knitted grey fabrics measuring 1077103. mtrs and dyed and printed man made fabrics of PFY measuring 1323350 mtrs by the Unit in their warehouse: (a) Receipt of said raw materials have been entered in the Raw materials Register maintained by the Unit durinc the relevant period. (b) D3 intimation had been filed with Range officer at the time of receipt of the consignments of said Raw materials. (c) I find that from re-warehousing certificate on the ARE-3 and corresponding delivery challans and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of goods has no relevance. There is no material available on the involvement of the appellant for the. alleged diversion of finished goods by the main noticee. It is well settled that penalty cannot be imposed merely on the basis of assumption and presumption and without any basis. The case of the Revenue is that the main noticee diverted the finished goods in DTA in violation of notification. The Appellant is supplier of raw material, which was received by the main noticee as per procedure prescribed. In such situation, the imposition of penalty on the appellant is unjustified. 8. The Tribunal on the identical situation in the case of M/s Marvel Fashions (supra), set aside the penalty and observed as under: "5. As is clear from above t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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