TMI Blog2005 (10) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... . [Order per : Jyoti Balasundaram, Vice-President]. Vide the impugned order, the Commissioner of Central Excise, Mumbai, has confirmed a duty demand of Rs. 51,88,978.04 under Section 11A(2) of the Act read with the proviso to sub-section (1) and Rule 9(2) of the Central Excise Rules and imposed a penalty of Rs. 30,00,000/- in terms of Rule 173Q(1) of the Central Excise Rules on the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut of all such operations was directed, controlled, contrived and executed by the appellants in such a manner as to funnel all processed fabrics ultimately to the appellants. He has also found that the prices shown for the stages prior to the goods reaching them were manipulated. He has also found that weavers of grey fabrics were forced to give bills for processed fabrics, even when they had manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the order suffers from the vice of contravention of the principles of natural justice and two, that the appellants neither supplied grey fabrics to M/s. Sharda Synthetics Bombay Pvt. Ltd. nor got any fabrics processed on their behalf and, therefore, they could not have been treated as the manufacturers of the processed fabrics. We note that the Commissioner had extended opportunities to the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... result, we hold that the evidence on record clearly shows that it is the appellants who were manufacturers of processed fabrics and that since they had undervalued the fabrics, the differential duty demand confirmed against them is sustainable. The appellants reliance on the decision of the Supreme Court in Ujagar Prints, 1989 (39) E.L.T. 493 (S.C.) does not help their cause as that decision rela ..... X X X X Extracts X X X X X X X X Extracts X X X X
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