2008 (8) TMI 688

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....ellant. Shri V.V. Hariharan, JCDR, for the Respondent. [Order per : P. Karthikeyan, Member (T)]. -  The appellants manufactured cotton yarn on cones and cleared to traders based in Bombay under proforma invoices. The assessee paid duty on the price shown in the proforma invoice. Investigation conducted by the departmental authorities following intelligence revealed that during the pe....

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....lower appellate authority also found that by the assessee's own admission it used to sell cotton yarn on cones through consignment agents till October '97. This along with the fact of clearances under proforma invoices evidenced that the impugned clearances from the factory of the assessee were only stock transfers and not clearances on sale. The assessee had suppressed the fact of clearances on s....

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....r letter dated 24-12-97 addressed to the jurisdictional Range Superintendent. They had stopped the practice when they came to know in October '97 the change in law made in September '96. They had not committed any infringement of the provisions with malafide intention. The department was duty bound to enlighten the assessee on the changed law. They had furnished copies of proforma invoices to the ....

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....old to consumers for the first time by its agents based in Bombay. This was also the position they maintained with another governmental agency in discharge of their statutory obligation under the TNGST Act. We cannot hold a different view on these transactions. However, we find that Show Cause Notice was issued on 15-11-1998 to demand differential duty in respect of clearances made between Novembe....