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TMI Blog2017 (1) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 1,72,42,235 allegedly short-paid on clearances of yarn into the Domestic Tariff Area (DTA) during May 2003 to March 2004. Appellant contended before the adjudicating authority that the clearance of these goods were at the applicable rate of duty of Central Excise and hence there has been no short-payment. 2. The adjudicating authority did not agree with this contention as notification no. 8/97-CE dated 1st March 1997, substituted by notification no. 23/2003-CE dated 31st March 2003 (at serial no. 3), predicated the eligibility to clearance at the rates of central excise duty only upon such clearances as were manufactured from domestically procured raw materials and held the appellant to be ineligible owing to absence of any evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue on the decision of the Hon'ble Supreme Court in Nahar Industrial Enterprises Ltd v. Union of India [2004 (170) ELT 518 (SC)]. 6. We have perused the contention of appellant that they have convincing proofs of domestic procurement of raw materials. We, however, do not feel that mere procurement of raw materials entitles them to eligibility to notification no. 23/2003-CE at serial no. 3 without it being put to use for such manufacture. No evidence has been submitted of the separate accountal and issue of raw materials in the manufacture of goods that were cleared domestically. This submission is not backed by any proof of procurement of all raw materials from domestic sources and, in the absence of such evidence, we cannot but concu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ac, 1944, was not unknown to the appellant. Appellant chose to pay duties under a notification for which they were not eligible. Such a failure is not attributable to lack of knowledge considering that appellant had obtained all the clearances from the Development Commissioner as is mandated in serial no.2 of table in notification no. 23/2003-CE which lays down condition for eligibility to duty concession of half of the aggregate duties otherwise leviable on imported goods. The availment of extended period of limitation and imposition of penalty under section 11AC of Central Excise Act, 1944 cannot be faulted. 9. For the above reasons, we find no reason to interfere with the impugned order and reject the appeal. (Operative portion of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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