9911796707
TMI Blog2023 (7) TMI 1016X X X X Extracts X X X X X X X X Extracts X X X X ..... Ms. Vishakha, Adv. Mr. B. Krishna Prasad, AOR Mr. A. N. Arora, AOR ORDER 1. Feeling aggrieved and dissatisfied with the impugned order(s) dated 24-03-2009 passed by the Customs, Excise and Service Tax Appellate Tribunal (hereinafter referred to as the "Tribunal") passed in Excise Appeal Nos.5511-5515/2004, by which the learned Tribunal has dismissed the said appeals preferred by the appellants herein, the original appellants have preferred the present appeals. 1.1 The facts relating to the present appeals in nut-shell are as under- The appellant/Uniworth Textiles Limited was at the relevant time 100% Export Oriented Unit (EOU) engaged in the processing and clearance of the goods falling under Chapters 51 and 55 of the Central Excise T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by UTL and UIL as "rejects" were nothing but prime and flawless fabrics and, therefore, benefit of Notification No.2/95-CE would not be available and, duties of excise are liable to be paid under proviso to Section 3 of the CEA 1944. 1.2 After giving an opportunity to all the notices, the Commissioner of Central Excise passed OIO dated 30.06.2004 confirming the show cause notices by observing and holding that the goods which were cleared were, as such, not the "Reject" goods but in fact the prime quality goods and under the guise of clearing "Reject" the prime quality goods were exported and sold into DTA to avail the benefit of Notification No.2/95-CE dated 04.01.1995. 1.3 The Commissioner also did not accept the transaction values de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the following submissions - 1. That the goods in question were rightly declared as 'rejects' and therefore, the benefit of Notification No.2/95-CE was rightly obtained; 2. that the extended period of limitation was wrongly invoked as the Superintendent was aware of the valuation and even vide notice dated 30.11.1998, the appellants were called upon to give explanation, which was furnished and, therefore, the Authorities were not justified in invoking the extended period of limitation; 3. that in any case and assuming all the allegations against the appellants to be true, in that case also, the excise duty leviable would be under Section 3(1) and not under proviso to Section 3(1) of the Central Excise Act, as claimed by the Revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was found that the appellants, in fact, imported the goods by mis-declaration and availed the benefit of Notification No.2/95-CE illegally, thereafter, the appellants cannot be permitted to say that there was no approval/permission to import the prime quality goods and, therefore, they shall be entitled to pay the lower rate of duty under Section 3(1). It is submitted that, therefore, in the facts and circumstances of the case, the decisions relied upon on behalf of the appellants shall not be applicable at all. 4.1 It is submitted that once it was found that the appellants misdeclared the goods and imported that goods showing as "Reject" and subsequently it was found that the goods which were imported were not the "Reject" but they were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore proviso to Section 3(1) shall not be applicable and the reliance placed upon the decisions of this Court referred to hereinabove is concerned, it is required to be noted that it was the appellants who got the approval to sell the goods, sold the goods may be at the relevant time the permission was to sell the goods shown as "rejects". However, thereafter it was found that the permission to import was obtained fraudulently by mis-declaring the same as "rejects" though the goods were of prime quality. Therefore, thereafter the appellants cannot be permitted to say that though the permission was to import the goods declared as rejects, subsequently it was found to be prime quality, there was no approval under proviso to Section 3(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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