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TMI Blog2017 (7) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... arious merchant manufacturers across India and process according to the instructions issued by the respective merchant manufacturers; the merchant manufacturers subsequently sell the processed fabrics in the open markets at the price determined by them; appellant collects only processing charges from the said merchant manufacturers and discharge excise duty based on the composition as informed by the merchant manufacturers and adopting sales price declared by the respective merchant manufacturers. After a visit of the Officers to the premises of the appellants, after an investigation, show cause notice was issued to appellant alleging that they had cleared man-made fabrics in the guise of cotton fabrics during the period 25.11.1987 to 30.04 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame have been duly approved by the department; appellants have maintained various records including raw materials accounts and filed regular returns and no objection has ever been made by the Revenue until the premises were visited by Officers of DGAE. It is his contention that the confirmation of the demand has arisen only on the ground that the samples drawn by the Revenue from the factory premises as well as the merchant manufacturers were tested that they were of manmade fabrics and not cotton fabrics; that the samples have been drawn from various premises approximately 170 premises, of which only 9 samples were drawn from the premises of the appellant and if any duty demand arises, it could be only in respect of these nine samples only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... products under exempted category, it is his submission that appellant had not sought any re-test of the samples which were drawn at various places and there is enough evidence to indicate that the samples which were drawn from 170 places were in respect of the goods dispatched by appellant. As regards the Revenue appeal, it is his submission that the adjudicating authority come to a erroneous conclusion that appellant had infact not dispatched manmade fabrics in the guise of processed cotton fabrics; he should have applied test reports of 170 samples to the balance demands raised by the Revenue as the evidence clearly indicate that appellant was involved in removal of manmade fabrics in the guise of cotton fabrics. 5. Considered the submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The defence put up by the appellant that there is no co-relation between the samples drawn and the lot register maintained by the appellant will not carry their case any further, as the statements of merchant manufacturers and other persons indicate that the samples which were drawn from 170 odd places were of the fabrics which were processed by the appellant and they were tested as manmade fabrics. In view of this, we hold that the evidences indicate that appellant was clearing processed manmade fabrics in the guise of processed cotton fabrics by availing ineligible exemption. 8. It is the argument of the appellant's counsel that the duty liability arises only on the merchant manufacturers, as they had given a declaration prescribed u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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