2006 (7) TMI 438

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....uring January to May, 2003. The lower appellate authority also upheld the findings of the original authority that the appellants had received the goods involved under Modvatable invoices and removed the goods without payment of duty and without subjecting them to any process in violation of Rule 3(4) of Cenvat Credit Rules, 2002. 2. Appearing on behalf of the appellant, ld. Counsel reiterated the arguments contained in the appeal memorandum against the impugned order. He submitted that, in their reply to the show cause notice, they had submitted before the original authority that the entire goods involved were subjected to various processes (winding/repacking) in their factory and cleared to M/s. Loyal Textile Mills Ltd., Kovilpatti....

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....idence of clearance of the yarn involved under bond from the appellant's factory to Loyal Textiles Mills Ltd. The yarn involved had been cleared in accordance with the procedure prescribed in Notification No. 43/01 (supra). It was submitted that in Orissa Synthetics Ltd. [1994 (69) E.L.T. 585 (Trib)] the Tribunal had held that input credit was admissible for manufacture of intermediate product which were cleared to another factory under bond under Rule 191B/191BB of the Central Excise Rules for export production. Ld. Counsel for the appellant prayed the instant case may be remanded to the original authority with a direction to examine whether cotton yarn involved had been cleared in accordance with the procedure prescribed under Notificatio....

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....ul misstatement, suppression of material facts, or contravention of any of the provisions of the Act or the Rules made thereunder with intention to evade payment of duty, then the manufacturer shall also be liable to pay penalty under the provisions of Section 11AC. 5. I have carefully considered the facts of the case and the submissions made by both sides. From the records, it appears that the appellant's claim that the impugned goods, cotton yarn, had been cleared to another unit for conversion into fabrics for further export, following the relevant procedure was not considered by the lower authorities. It is seen from the SCN that the goods had been cleared to Loyal Textile Mills Ltd. against CT 1 certificate. The original author....