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2017 (7) TMI 403 - CESTAT CHENNAIClandestine removal - AMSM was indulging in removing cotton yarn in the guise of hank yarn - time limitation - case of appellant is that that since two show cause notices were issued on identical set of facts, evidences, allegations, the subsequent show cause notice raising a demand of ₹ 32,73,025/- is barred by limitation - Held that: - the basis for demand of duty in the first show cause notice and the second show cause notice is entirely different. The department has relied upon 59 documents for issuance of the second show cause notice whereas in the first show cause notice they have relied upon 25 documents as stated earlier. All these would go to show that both the show cause notices are entirely different. We do take note of the argument put forward by the learned AR that there was a time limit prescribed under section 110 of Customs Act, 1962 for issuance of show cause notice proposing for confiscation of the goods when the goods have been seized. Thus, the first show cause notice appears to have been issued by the department to comply with this statutory time limit and confining the proposal for confiscation, imposition of fine, penalty and duty demand to such allegation only. Though the date of recording of statements may be before issuance of first show cause notice (6.6.2002), we have to consider the fact that department would require more time for investigation, follow-up action, formulation of allegations based on such statements and invoices for issuing of the second show cause notice raising the allegation of clandestine removal of goods and duty demand on this count. Considering the voluminous nature of evidences, we do hold that the issuance of the second show cause notice dated 7.5.2004 is legal and proper and not hit by limitation. Appeal dismissed - decided against appellant.
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