TMI Blog2016 (10) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assesse during the relevant time has not been examined in correct prospective by the Adjudicating authority before confirming the demand. Commissioner failed to appreciate that they are using domestic cotton also for manufacture and export of yarn. The reliance placed by the Commissioner on the E-mails without any corroboration is not sustainable. Even after recording that these evidences do not necessarily mean that all other domestic clearances were also made from imported cotton, it was not established by any record that all raw materials were not of Indian origin. The impugned order are arbitrary and without sound legal basis - appellant eligible to claim exemption - appeal allowed - decided in favor of appellant. - Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... October and November 2002, January and February 2003 were examined by the officers. The officers then compared it with records and found that 26 entries carried the description under the blend column Brazilian . Further investigations were carried out by the Department resulting in the proceedings against the main appellant and others. The essence of the charge against the main appellant is that they have availed concessional rate of duty for the yarn cleared to the domestic market in terms of Notification 8/97-CE without fulfilling the condition of using raw materials produced or manufactured in India. In other word it is the case of the Revenue that the appellants used certain imported cotton (Brazalian) and, hence, the exemption cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the godown stage and has no relevance relating to composition of yarn for manufacture. We find the main thrust of the finding by the Original Authority is on the failure of the appellant in satisfactorily establishing that they have maintained separate accounts for consumption of imported raw material and indigenous raw material from the beginning. The learned Counsel for the appellant submitted in detail the various documents and records maintained by the appellant in their unit. He also drew our attention to letters dated 26/02/08 and 05/02/08 with supporting documents to establish that the imported cotton usage as well as indigenous cotton usage has always been maintained separately which can be established with a linkage in each stag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eport. The learned AR submitted a letter dated 05/08/16 received from office of the Commissioner, Central Excise, Chandigarh - II. On perusal of the noting by the officers who conducted the verification it is clear that the accounts as submitted by the main appellant on 05/02/08 has been checked and cross verified and found to be tallying. We note that the officers recorded that Lot Detail Report received from the appellant s factory in April2003 did not contain the source of fiber. We have perused some of the Lot Detail Report as available in the appeal papers. It is clearly mentioned in the top left side of the report indigenous . The learned Counsel submitted that this is with reference to the consumption of indigenous fiber. Further, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for all the domestic clearances made in 2002-2003 denying the concessional rate of duty has been confirmed on the main ground that the appellant failed to establish maintenance of separate records of indigenous/imported raw materials. As noted above, the Commissioner deputed a team of officers to verify the fulfillment of the condition for concessional rate of duty. They have submitted their report to the Commissioner. The learned Commissioner noted that the computerized print outs of the report were not old and seems to be fresh thought pertains to the period 2002-2003. He further relied on Export Detail Report, receipt Detail Report and Lot Detail Report recovered from the factory in April 2003 to indicate that there is no evidence to sho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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