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2022 (9) TMI 433 - Central Excise
Maintainability of appeal - appropriate forum - Clandestine Removal - grey fabrics - yarn cleared without payment of duty by M/s. Filatex under Rule 12B of Central Excise Rules, 2002 to their job workers - yarn diverted and sold elsewhere and records & payment transactions had been manipulated for such fictitious sale of fabrics - POY has been diverted without payment of duty under the garb of its clearance under the Rule 12B of Central Excise Rules, 2002.
HELD THAT:- An appeal shall lie against the order of the Appellate Tribunal if the High Court is satisfied that the case involves a substantial question of law.
The Revenue appears to be agitating factual aspects in the matter. A perusal of the Tribunal order indicates that the Tribunal after having heard both sides and after having perused the case records has given a fact finding on the issues raised on behalf of the Appellant-Revenue. It has found that in the present case the fabric was shown to have been manufactured from six job workers, viz., M/s. Rama Filament Pvt. Ltd., M/s. Geena Synthetics Pvt. Ltd., M/s. A. P. Textiles Ltd., M/s. Mansa Synthetics Pvt. Ltd., M/s. Micro Polyester Pvt. Ltd. and M/s. Good Luck Synthetics Ltd.
The Tribunal has given a finding that it is undisputed that the Department was in knowledge of the job work activities, that while sending goods, the challans were prepared and the yarn was acknowledged by the job workers of having been received. Respondent-Company has paid job work charges to the said job workers and also deducted TDS on such payments as found by the Tribunal from Form-16A issued to all six job workers. It is also recorded by the Tribunal that during investigation, the statements of the Joint Managing Director, Director and employees of Respondent-Company were recorded and all of them has stated that the goods were sent for job work. The Tribunal also records that in respect of M/s Geena Synthetics, M/s. Rama Filaments, M/s. Mansa Synthetics, M/s. Micro Polyester and M/s. Good Luck Synthetics were existing at the time of investigation. It is further recorded that none of the statements from the job workers recorded by the investigation deny the fact that they had undertaken job work activity on behalf of Respondent-Company.
All the factual aspects raised on behalf of the Revenue, appear to have been answered by the Tribunal. The Revenue has not been able to controvert any of these findings nor is there any material shown to us that demonstrates anything to the contrary.