2006 (10) TMI 341

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....entral Excise Rules, 1944 with an option to redeem the  same on payment of fine of Rs. 35,000/-, (b) confirmed customs duty demand of Rs, 1,36,030/- against M/s. Kansal Texo Tube Pvt. Ltd. (100% EOU) on 1800 kgs of imported polyester filament yarn seized at the premises of M/s. Jay Krishna Sizers and ordered to be confiscated and Rs. 3,64,559/- on 4824 kgs. of imported polyester filament yarn seized at the premises of M/s. Carewell Rayons Pvt. Ltd. and ordered to be confiscated (total duty demand is Rs. 500589/-), (c) imposed penalty of Rs. One lakh under Sec. 112(a) of the Customs Act upon the 100% EOU, and (d) imposed penalty of Rs. 50,000/- on its Director under the provisions of Sec. 112(b) of the Customs Ac....

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....unts for receipt, issue and consumption of the raw materials in their factory. No statutory records were found in their premises for receipt or consumption of raw materials. Statements of the Director of the 100% EOU and of the partner and authorized signatory of M/s. Jay Krishna Sizers and M/s. Carewell Rayons Pvt. Ltd. respectively were recorded. Investigations revealed that the 100% EOU were involved in the clandestine removal of imported PFY received by them duty free under Notification No. 59/98 for manufacture of export goods, that they diverted the imported raw materials in connivance with the brokers and their buyers (M/s. Jay Krishna Sizers and M/s. Carewell Rayons Pvt. Ltd.) and obtained sale proceeds in cash. Such diversion amoun....