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TMI Blog2008 (6) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... awal, Director. The Director admitted in his statement that the grey fabrics which were not found had been received from the merchant manufacturers under 33 challans and the resultant processed fabrics of 1,82,702 L.Mtrs. valued at Rs. 27,83,610/- were cleared without payment of duty to the concerned merchant manufacturers during May, 2003 to June, 2003. After identifying the missing lots on scrutiny of lot register, the merchant manufacturers were identified and in the statements of the 3 merchant manufacturers, they admitted having sent the grey MM fabrics under challan for processing and receiving the resultant processed fabrics without payment of duty and they also stated that they had paid job charges in cash to the unit. After due adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t manufacturers had denied the allegations at the first opportunity given to them since the copy of panchnama and the copy of statements were not handed over to them earlier. 3. Ld. DR relies on the decision of the Tribunal in the case of M/s. Montex Dyg. & Ptg. Works v. CCE & C, Surat reported in 2007 (208) E.L.T 536 (Tri.-Ahmd.) to support his argument that the evidence of merchant-manufacturers and the Director of the company is sufficient to establish the case and further he also states that it is a settled principle of law that retractions of statements on subsequent stages without any proof of coercion etc. is not valid and the statements continue to have evidentiary value. 4. In this case, the departmental officers have found short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G 23A Part-2 register and the challans covering the transportation of grey fabrics to the appellants' unit had also been received in the factory and entries had also been made in the lot register and only the goods were not found. All the appellants had to do to defend their case was just to show the relevant central excise invoices with the corresponding challan number or documentary evidence to link the central excise invoice to the challan and show that grey fabrics received by them had been processed and sent back on payment of duty. Mere entry in RG 23A Part-1 or Part-2 register does not prove the utilization of grey fabrics in the manufacture of processed fabrics and the dispatch of the same on payment of duty. Therefore this claim fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -2004 to 31-8-2005, there is no such dispute. At this juncture, we cannot pussyfoot around, the argument that had the exemption under of Notification No. 56/2002 been extended to the appellant Noticee 1, nothing would remain payable to the Revenue. This argument which appears to us very much as an "argument of convenience" was never made before the lower authorities and not even whispered in their reply. Admittedly, it entails a detailed examination of facts as elaborated in the procedure laid down vide paragraph 2 and 2A of the said Notification. As mentioned before us, the benefits under this Notification are being claimed by the appellants before the concerned authorities and hence it does not call for a fresh expedition by us at this ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
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