2007 (1) TMI 371

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..... njay Kumar, DR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. - Heard both sides and perused record. 2. The duty demand of Rs. 10 crores, and equal amount of penalty, is in regard to Polyester Staple Fiber used in export (yarn) production. The fact of converting the polyester staple fiber to yarn and exporting the resultant yarn is not being disputed. 3. The contention .....

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..... iber was exported. The rule does not place any restriction on the removal of goods for export production. Sale, purchase and payment are altogether irrelevant for the purpose of the rule. 6. In the above view of the matter, we are of the opinion that the duty demand is not sustainable. In the absence of duty demand, penalty has no place. 7. In the result, requirement for pre-deposits i .....

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