2007 (5) TMI 376

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.... procured duty free raw materials from other 100% EOUs (which was treated as deemed export for the said supplying 100% EOUs) and also from other DTA units. (b)     When the officers visited the unit on 12-7-01 and conducted investigation, it came to light that the raw materials were found to have been cleared clandestinely from the customs bonded warehouse. The clandestine removal was admitted by Shri Dineshbhai Jayantilal Jariwala, partner of the appellant firm in his statement dt. 12-7-01 and reiterated in his statement given nearly after 2 years on 6-6-03. (c)     Shri Kanchanlal Champaklal Rana, the recipient of such illegally diverted raw materials also admitted receiving the same on payment of....

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....s not legal. 5. Learned SDR points out that the relied upon documents clearly indicate that one of the statements having been recorded on 6-6-03. Therefore, the contention of learned advocate for the appellant that the investigation was completed in August 2001 is on the face of it is incorrect. He also submitted that penalty imposed is clearly under Rule 25 and reference to 11AC is only to indicate that the ingredients of fraud, mis-statement, suppression of fact are involved in this case. He also submits that in this case, the raw materials have been procured from other 100% EOUs treated for such supplying units as deemed exports. The excise duty payable on the diverted materials is the aggregate of customs as if they are imported b....