TMI Blog2006 (5) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... rn (POY), in excess of the stock record in statutory records was found lying in Unit No. 3. Shri Rafiq Ibrahim Memon deposed that the said goods were purchased by him at the rate of Rs. 61 per kg. totally valued at Rs. 12,39,825/-, (Rupees twelve lakhs thirty nine thousand eight hundred twenty five only) through brokers, on cash basis, without any duty paying documents etc. The said goods were seized on the reasonable belief that the same were smuggled. Statement of Shri Memon were recorded wherein he admitted certain shortages of the final product in Unit No. 1 and clarifying that the same were sold through brokers in the open market on cash basis without making entry in statutory records and without payment of Central Excise duty leviable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prime contention that the goods found in excess in Unit No. 2 were, in fact, goods found short in their Unit No. 2 and duly covered by three bills of entry for the said purposes. They also produced on record the said bills of entry, packing list of the supplier and their invoice etc. As regards, the confessional statement, they submitted that the same should be treated as a lightweight document requiring independent corroboration, and inasmuch as, there is no other evidence on record to show the smuggle nature of the goods in question, they should be released. In any case the appellants have discharged their onus to show that the said imported POY was brought to India under the cover of three bills of entries. 4. The said contentions were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Memon he submits that it is recorded therein that imported raw material was bought at Rs. 61/- Per Kg. and the final products were sold at Rs. 47/- Per Kg. in the open market, he submits that a reasonable prudent businessman would not sell the goods at rate lower than the brought out rate. This fact is sufficient enough not to inspire confidence in the correctness of the statements. 6. After considering the submissions made by both the sides, we find that the entire case of the Revenue is based upon the excess found POY in the appellants Unit No. 3. Admittedly, appellant is a 100% EOU and are entitled for duty free imported POY in terms of Notification No. 53/97-Cus. In such a scenario, the motive on the part of the appellant to buy the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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