TMI Blog2008 (6) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellants are engaged in the manufacture of MM fabrics. The central excise authorities conducted preventive check of the unit on 10-7-2003 and found shortage of 1,82,702 L.Mtrs. of grey fabrics when they took the physical stock of grey fabrics and semi processed or processed MM fabrics in the presence of panchas and Shri P.M. Agrawal, 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 reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls Ltd. ors. v. CCE C, Vapi - Final Order No. A/2803 to 2805/WZB/AHD/07, dt. 14-11-07 [2009 (233) E.L.T. 389 (T)] in support of his argument that show cause notice has to be issued within 6 months of the knowledge of the clandestine removal by the Department. He also pointed out that the Director of the appellants as well as the merchant 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 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also well settled principle of law that statements recorded by officers of Central Excise and Customs are valid as evidence. The fact that there was entry made in RG 23A Part-1 would not be of help if the raw materials are not available in the factory. In this case admittedly goods have been entered in RG 23A Part-1, credit has been taken in RG 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 l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was required to he filed by 5-8-2000. Considering that to be the relevant date as per the definition reproduced, in para 11 above, the show cause notice issued on 4-8-2005 is well within the prescribed period of five years for the entire period covered thereunder. As regards the second show cause notice dated 15-9-2005 which covered, the period from 1-10-2004 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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