2005 (9) TMI 388

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....ppellant. Shri Hitesh Shah, SDR, for the Respondent. [Order per : Moheb Ali M., Member (T)]. - The appellant has an unit in KFTZ. They submitted a project report to the Development Commissioner KFTZ to establish an unit for manufacture of plastic goods and plastic articles of certain types. The appellants were given a letter of authority dated 1-11-1988 by the Development Commissioner (DC....

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....aulins and plastic bags and exported these goods without payment of duty under AR4s under para 106 of ITC Policy 1992-97. The appellants effected export of goods worth Rs. 21.66 lakhs against the projected export of Rs. 30 lakhs in the first year of production. Whatever exports that were done by the appellants were approved by the DC. This then, is the background. 2.  A show cause notice d....

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....ppellants have not stuck to the project report submitted by them to the DC in which they stated that they would manufacture the finished goods in a particular manner. Non-observance of the method stated in the project report, according to the Commissioner, is a violation of the condition of the notification. According to him the extruder machines which were procured duty free were not used in the ....

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....facture except pin-holing and end-stitching and therefore the raw materials have been exported as they are. Granting without admitting that this contention is correct, it is not understood how it is a violation of condition of Notification 126/94-CE. Instead of bringing these raw materials under CT 3 to KFTZ if they are directly exported no duty will have been payable on them. It is for the Develo....