TMI Blog1999 (1) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellants in this case were working under the physical control system. They were receiving polyamide (nylon) chips under Chapter X procedure at Nil rate of duty and manufacturing monofilament yarn from them and clearing the same on payment of duty. One consignment of 4 M. Tons was cleared by them under Gate Pass No. 1 on 24-9-1991 showing the variety of goods as `nylon monofilament yarn and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Zeb Mono-Plast. A show cause notice dated 16-4-1992 was issued seeking recovery of differential duty, confiscation of part of the goods seized from the consignment cleared at lower rate of duty and imposition of penalty. Before the Collector, the assessees cited the Supreme Court judgment in the case of M/s. N.B. Sanjana [1978 (2) E.L.T. (J 399)] and claimed that the notice was bad on the aspect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed to duty. The gate pass was accompanied by an application for removal in the proper format. In this situation, it has to be held that the goods were cleared with the knowledge of the Department. Rule 9(2) speaks of a situation where goods are removed in a clandestine manner. In the cited judgment, it has been held that where goods have been removed with prior permission of the Central Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In such a situation, the findings of the Supreme Court in the case of Raj Bahadur Narain Singh Sugar Mills [1996 (88) E.L.T. 24] would apply. This is so even where the Collector has covered the lapse in the show cause notice in his order holding that there was deliberate and willful mis-declaration. I thus find that provisions of Rule 9(2) could not be invoked in the present case either to deman ..... X X X X Extracts X X X X X X X X Extracts X X X X
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