1999 (1) TMI 130

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.... for the Respondent. [Order]. - The appellants in this case were working under the physical control system. They were receiving polyamide (nylon) chips under Chapter X procedure at Nil rate of duty and manufacturing monofilament yarn from them and clearing the same on payment of duty. One consignment of 4 M. Tons was cleared by them under Gate Pass No. 1 on 24-9-1991 showing the variety of g....

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....milar goods by another manufacturer viz. Zeb Mono-Plast. A show cause notice dated 16-4-1992 was issued seeking recovery of differential duty, confiscation of part of the goods seized from the consignment cleared at lower rate of duty and imposition of penalty. Before the Collector, the assessees cited the Supreme Court judgment in the case of M/s. N.B. Sanjana [1978 (2) E.L.T. (J 399)] and claime....

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....ch counter signature was made, the consignment was assessed to duty. The gate pass was accompanied by an application for removal in the proper format. In this situation, it has to be held that the goods were cleared with the knowledge of the Department. Rule 9(2) speaks of a situation where goods are removed in a clandestine manner. In the cited judgment, it has been held that where goods have bee....