9911796707
TMI Blog2008 (9) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Appellant. Dr. M.K. Rajak, SDR, for the Respondent. [Order per : Archana Wadhwa, Member (J)].- All the appeals are being disposed off by a common order as they arise out of the same impugned order passed by Commissioner vide which duty of Rs.1,42,89,792/- stands confirmed against M/s. Akash Fabrics along with imposition of penalty of identical amount in terms of Section 11AC of the Central Excise Act, 1944 read with Rule 25 of the Central Excise Rules, 2002 on the allegations and findings of domestic clearance of duty free procured partially oriented yarn, instead of utilizing the same in the manufacture of the goods to be exported. In addition interest also stands confirmed against them in terms of the provisions of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corded stock of raw materials. 4. During the course of further investigations statement of Shri Jayprakash Motwani were recorded on various dates wherein he deposed that the procured POY was texturised by them on 2 texturised machines having 216 spindles and after texturising the yarn, the same was used on circular knitting machines and no conning oil for twisting was being used by them. He further deposed that the texturised yam made out of the POY was being supplied to another 100% EOU M/s. Shiv Processors. He also submitted that wherever rewarehousing certificates have not been received from M/s. Shiv Processors, they would pay the duty. Subsequently, the said appellant also deposited an amount of Rs.10,41,530/- towards Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sporters recorded during the course of investigations stand discussed in the impugned order of Commissioner. 7. The Revenue further investigated the matter and made a reference to the Executive Engineer (Electricity), Administration of UT of Daman Diu and found that there was no connection existing in the name of M/s. Akash Fabrics, which was in the name of M/s. Associated Plastic Industries. Even the details of the electricity bills raised for the period were scrutinized and it was found that the electricity consumption by M/s. Akash Fabrics for manufacture of the finished goods was much on the lower side and was not sufficient to manufacture the quantity of fabrics shown to have been manufactured by them. 8. It was further found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocuments for showing clearance of the fabrics to M/s. Shiv Processors and from M/s. Shiv Processors to M/s. Neeraj Exim Pvt. Ltd. were only fabricated to establish the use of POY. 9. Based upon the above, proceedings were initiated for confirmation of demand of duty as also for imposition of penalty, which proceedings stand culminated into the impugned order passed by Commissioner. 10. We have appreciated the submissions made by both the sides and have gone through the impugned order. The appellant's main contention is that the entire case of the Revenue is based upon the statements of various persons, mainly the statement of the dealer of POY, who has not been offered for cross-examination and there is no other corroborative evidences ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessors. Apart from the fact that latest consignment of fabrics cleared under invoices against CT-3 certificates have not been found physically in the premises of M/s. Shiv Processors and who has agreed to have not received the same, we note that the investigations conducted by the Revenue in respect of the earlier consignments also establishes that the further clearance of goods by M/s. Shiv Processors to M/s. Neeraj Exim Pvt. Ltd. never took place. The statements of various transporters reflected in the transport documents have admitted having never transported the goods from the factory of M/s. Shiv Processors to M/s. Neeraj Exim Pvt. Ltd. To that extent, we find that the statements of various persons corroborate such other and the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be considered as legal evidences against the appellant to establish the diversion of POY from their factory. 14. In a nutshell, we hold that cumulative reading of and reliance upon the statement Shri Kaniya Lal Gautam and Shri Shyam Sunder Sihotia, Partner of M/s. Shiv Processors arid statement of Shri Jayprakash Motwani, statements of transporters showing non-transport of the goods from the factory of M/s. Shiv Processors to M/s. Neeraj Exim Pvt. Ltd., the scrutiny of the seized records from the premise of M/s. Shree Ram Synthetics and statement of Shri Pawankumar Bansal, non-working condition of machines, the electricity bills showing less consumption, all constitute substantial evidence to hold that the duty free POY received by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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