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TMI Blog2014 (2) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. Appeal No. E/629/11 is filed by Jannat Fabrics (100% EOU) against the demand of Rs.3,24,37,907/-, interest and penalty. 3. Brief facts of the case are that the appellants are 100% EOU and are engaged in the manufacture of polyester twisted yarn and polyester woven fabrics. The appellants were working under Notification 1/95-CE dated 1.4.1995 and procuring the raw material without payment of duty on the condition that the same is used in the manufacture of goods exported. 4. During investigation, it was found that the appellants had procured raw material without payment of duty and cleared the same to DTA without payment of duty. AS the appellants had not complied with the conditions of the Notification under which the appellants were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout payment of duty as per the terms and conditions of the Notification 1/95-CE and the same is used in the manufacture of goods cleared to other 100% EOUs. Detailed investigation was conducted from the transporters whose truck numbers were mentioned in the documents under which the goods were cleared to the other100% EOUs and also from the recipient of the goods. During investigation, it was found that the record prepared by the appellants showing the use of the raw material procured by claiming the benefit of the Notification, is used for intended purpose whereas in fact the appellants cleared the same to the DTA in violation to the conditions of the Notification. The evidence so collected was ultimately put to Shri Dharampal Lalchand C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestigating authorities and he was summoned in the years 2003 and 2005 on various dates and the summons were received back with the remarks that the factory is found closed and no responsible person is available. Ultimately his statement was recorded on 15.12.2006. Thereafter investigation was further conducted from the proprietor Shri Kamal Lalchand Chugh and in the year 2009 by statement dated 16.12.2009 he admitted that one Shri Gopal Vyas paid him Rs.4 lakhs in cash to start the activities and he was working under the instructions of Shri Gopal Vyas. In view of this, the show cause notice to the firm was issued within five years from the date of knowledge, whereby the appellants admitted the activity of clandestine clearance of the good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cipient of the goods cleared by the appellants and it was found that no deemed exports were effected by the appellants and the documents like ARE-3s, invoices etc. were fabricated. Similarly, in the case of Jannat Fabrics, the appellant, the goods were shown to be cleared to various 100% EOUs and the investigation conducted from the recipient and the EOUs show that no such goods were received by them and some of the recipients such as Amey Dyeing & Printing were found to be fake. 8. We find that the appellants in reply to show cause notices nor before the adjudicating authority, denied the fact that the raw material which is procured without payment of duty under the provisions of the Notification is cleared clandestinely without payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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