2006 (1) TMI 401

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....nt. [Order per : P.G. Chacko, Member (J)]. -  An amount of duty of Rs. 11,72,990/- has been demanded from M/s. Global Yarn Spinners (partnership firm). A major part (Rs. 9,73,063/-) of this duty demand is on cotton cone yarn found to have been clandestinely removed by the assessee and the rest of the demand is based on the finding of "relationship" between the assessee and M/s. Raju Rajamma....

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....Rs. 20,000/-. There is, again, a penalty of Rs. 20,000/- on M/s. Golden Dye House from whose premises the assessee's goods were seized. There is also a penalty of Rs. 20,000/- on M/s. Global Yarn Spinners in this case also. Besides these, there are also penalties on four Directors and two employees of M/s. Goodwill Textiles (P) Ltd. 3. The present applications seek waiver of predeposit and s....

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.... "related" person sold the goods to their own customers. However, the evidence on record seems to support the finding of clandestine removal of goods by M/s. Global Yarn Spinners and M/s. Goodwill Textiles (P) Ltd. Hence we direct the assessees to predeposit the duty amounts relating to the goods found to have been clandestinely removed. Accordingly, we direct M/s. Global Yarn Spinners to deposit ....

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.... and stay of recovery in respect of the penalties imposed on the latter. Prima facie, it appears that no nexus has been established, in the impugned order, between the four Directors and two employees of M/s. Goodwill Textiles (P) Ltd. and the offending goods. Hence, we find no reason to ask these persons to predeposit any amounts towards penalties. There will be waiver of predeposit and stay of r....