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TMI Blog2008 (9) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner, Kandla Free Trade Zone, Kandla. Their factory was visited by the officers of Directorate General of Central Excise Intelligence (DGCEI) on 10-5-2002, who conducted various checks and verifications. It was noticed that the said appellant was de-bonded on 10-4-2002 and was no longer enjoying the status of a 100% EOU. During the course of search, records maintained by the said unit during the ordinary course of their business as also some other documents pertaining to M/s. Shree Shyam Syntex and M/s. United Enterprises were also recovered. Statements of various persons were recorded and further investigations were made, on the basis of which show cause notice was issued alleging that the two proprietary firms i.e. M/s. Shree Shyam Syntex and M/s. United Enterprises, who have procured the yarn from the open market and sold the grey fabrics, were actually dummy units owned by M/s. Laxmi Impex and all the manufacturing activities were being undertaken by M/s. Laxmi Impex. It was further alleged that the said units have manufactured grey fabric on "job work" from duty paid yarn received from 14 different units whereas carrying out of job work was not permissible to a 100% EOU. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the proprietor. By drawing our attention to a letter dt. 3-2-2005 written by the Dy. Director of DGCEI, while responding to the request of the appellant for supply and inspection of seized records, it stands contended that the officers were not only coercing the proprietor to sign on the dotted lines of the statement and charts put up to him but were also threatened to proceed against the appellant under Section 228 of the Indian Penal Code. For better appreciation, we reproduce the para-2 of the said letter. "2. In this context you are requested to visit this office with prior appointment to inspect the records in this office and identify the records, whose photocopies are required by you. However, it is pointed out here that during the course of investigations being conducted against you and various statements recorded, you have been shown the said records and you have also put your dated signatures on the same. As such, your contention that your not been shown the records and that the statements of yours have been recorded without verifying the facts from the records is grossly incorrect and your are directed to desist from adopting such diversionary and dilutory tactics in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so submits that submission of bills at this stage denies the Revenue a chance of verifying the authenticity of the same. Shri Sameer Chitkara has also pleaded that the bills in question are issued by weavers in Bhiwandi, who do not have the latest technology of weaving the fabric on Suzular Technology. 6. After considering above submissions and after going through the impugned order, we find that the said bills of job work produced by the appellant do not stand considered by the adjudicating authority. Without going into the aspect whether the same were placed by the appellants before him or the same stands produced before us now, we are of the view that inasmuch as the same are crucial evidence to the dispute in question, they are required to be examined, along with the appellant's claim of having made payments to these weavers through cheque. If it gets established that the job work on account of 14 entities was actually done by these weavers, the Revenue's allegations against M/s. Laxmi Impex having undertaken the work of job work would lose its ground. It further stands contended by the Ld. Advocate appearing for the appellant that if these documentary evidences are taken int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of Sh. Pravin Dave of M/s. PSL, one of the 14 entities admitting that the goods manufactured were further got processed from one M/s. Anant Syntex & others and brought back to their factory wherein it was cut into various sizes and exported. The waste cuttings like rags and chindis were cleared on payment of duty. This statement would show that the officers have not completed the enquiries into the final disposal of the grey fabrics woven on job work by the 14 entities and have not found out as to whether the goods allegedly manufactured by M/s. Laxmi Impex on job work basis were, further exported by the sender of the raw materials or not. Inasmuch as the matter is being remanded, we expect the Commissioner to deal with the above submissions of the appellant also. The other submission made by the appellant that they were under a bona fide belief that the goods were required to export as also the notice being barred by limitation and the fact of the grey fabric being exempted from payment of duty if manufactured by an indigenous unit and the effect of Tribunal's decision in the case of CCE v. M/s. Gujarat Ambuja Exports Ltd. [2007 (207) E.L.T. 132 (Tri. Mum.)] would also to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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