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TMI Blog2018 (5) TMI 1478X X X X Extracts X X X X X X X X Extracts X X X X ..... ndertaking to use the imported goods for the manufacture of goods for export. The Officers of Preventive Unit, visited the premises on 14.11.2003, 22.1.2004 and 28.11.2004. During visit, it was found that respondents had huge stock of raw materials when the demand for final products was very high and finished products were exported to US and Germany. Subsequently when the market in overseas slumped, appellant stopped production / export of final products viz; battery chargers and transformer adaptors. They switched over to production of emergency lamps from 2001 onwards. The stoppage of production of battery chargers resulted in surplus stock of imported raw materials. It was also found that they had cleared the unutilized surplus raw mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods are imported without payment of duty and cleared after some time as they were no longer required. All the goods imported were tested for quality parameters before taking into the books of account and when not used, they become obsolete either because of lack of business or deterioration because of the storage. iii. From the letter dated 14.11.2003 and 22.1.2004 and statement dated 28.01.2004 of Shri.A.Subramaniyam, Senior Executive, Stores of the company it can be surmised that the goods in question lost their utility because of the delay in consuming (stored for a long time) and when such goods were cleared, they were only "imported goods" cleared as such without being put into use for the purpose of manufacture as provided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tambaram Division that they have accumulated imported raw materials / copper wire over a period of time to an extent of 40 tonnes, out of which 20 tonnes of wire had lost its "insulation‟ properties and developed pin holes which made the wires unsuitable for transformer winding purpose. They requested the Asst.Commissioner to permit them to send the wires for re-drawing to M/s.Cubex Tubing Ltd, Pondicherry on job work basis. Though permission was granted, respondents later did not send the goods as they were not confident of the economic viability. This was explained to the officers when they visited the premises on 14.11.2003. The statement of Sh.Subramanian, Senior Executive was recorded on 28.1.2004, wherein he explained that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity of goods due to long storage. The department had given permission to clear to job worker for redrawing. This itself would show that the goods have become unusable, and have to be considered as rejects/wastes. Thus the allegation that respondents removed the imported goods „as such‟ is without basis and not acceptable. The respondent had informed the department vide letter dt.26.3.2003. Later on 14.11.2003, when the officers visited the premises also department have been put to notice about the huge stock of unusable raw materials. Respondents have paid duty on clearing the goods in 2003 itself. However, the SCN was issued only in 2006 beyond the normal period alleging suppression. We do not find any evidence to support the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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