TaxTMI 
TaxTMI 
2006 (5) TMI 332
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....xcise and Customs, Surat. 2. In brief, the case of the department is that M/s. Skyron Overseas, (100% EOU) manufacturers of Polyester Twisted yarn, Artsilk Polyester/Synthetic Fabrics, Sarees & Dress material imported duty free Polyester filament yarn weighing 83856.548 kgs. and also procured indigenously 33,567.759 kgs of polyester texturised yarn and diverted the same in the local market, without carrying out any manufacturing activities in their unit, without payment of duty on varius fake invoices and other documents raised in the name of advance licence holders against forged and fake advance licence/Advance Release Orders to adjust such clandestine/illicit clearances by showing as if the goods were supplied to other 100% EOUs, i....
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....iled finding of the Commissioner that they have diverted the imported/indigenously procured raw materials in the open market by manipulating their statutory records and making false entries thereunder to show that the raw materials procured for the manufacturing products were cleared against advance licence/AROs to M/s. Mairaj Exports, Moradabad which was found to be non-existence. This finding is inter alia based upon the statement of Shri Anil Ganeshamal Mahshwari, Proprietor of M/s. Skyron Overseas, wherein he had admitted that they had diverted the raw materials to local market without carrying out any manufacturing activity and documents were procured to cover up the illicit clearances of such raw materials and various entries were mad....
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....he paper work of 100% EOU, including the maintenance of statutory records and verification of the same and also issued invoices for goods showing clearance to non-existent firm M/s. Mairaj Exports with the knowledge that no goods were manufactured out of the raw material imported/procured indigenously duty free and that the raw material was sold in the open market. Therefore prima facie, the provisions of Sec. 112(a) and (b) and Rule 209A are attracted against him. We, therefore, direct pre-deposit of Rs. 1.5 Lakhs (Rupees One Lakh and Fifty Thousand only) towards penalty within a period of 8 weeks from today and on such deposit, pre-deposit of balance penalty stand waived and recovery thereof stayed pending his appeal. Failure to comply wi....