TaxTMI 
TaxTMI 
2009 (9) TMI 700
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....ows : (i) the main applicant, M/s. Singh Overseas is a 100% EOU and has imported 18 consignments of polyester knitted fabrics and procured from units in Domestic Tariff Area four consignments of the same material duty free under CT-3 certificate. They are required to use the duty free material for manufacture and export garments as per the EOU scheme approved for them; (ii) when the factory premises of M/s. Singh Overseas was visited on 11-02-2003, there was no record relating to receipt, use and disposal of the materials; no items like buttons, zip, printing ink, marking pattern, packing material etc. which could be indicative of manufacture of garments by the said 100% EOU; (iii) Shri Karamveer Singh, proprietor of....
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....de : (i) The show cause notice dated 2-6-2006 was served personally on 19-6-2006 along with annexures; they filed an interim reply on 26-9-2007 at the time of personal hearing and subsequent intimations regarding personal hearing were not received by them, as a result they were not able to file full-fledged reply and they were not able to cross-examine certain persons whose cross-examination was sought for. Therefore, the order has been passed in violation of principles of natural justice. (ii) They have exported 12 consignments and in respect of the first five consignments, they have received the sale proceeds; two consignments which were exported were returned back; three consignments which were initially sought to be clea....
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....Revenue, took us through the relevant portion of the order of the original authority and made the following submissions : (i) The exported consignments are clearly of sub-standard quality and the same have not been manufactured out of the imported/locally procured duty free materials. In support of this submission, she brought to our notice, for example, some consignments which were exported declaring a value of Rs. 66.50 lacs were found to have been cleared at Dubai declaring only a value of US $ 7,608/- (approximately Rs. 3.5 lacs). She also relies on wide variation in the grammage of garments exported, (arrived at on the basis of weight and quantity in the export documents) and the average weight as arrived at based on the import....
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....ply by M/s. Singh Overseas. Having received a show cause notice proposing a demand of a sum of over Rs. 2.5 crores, the fact that they did not file even an interim reply for such a long time looks rather strange. We have also been shown evidence to the effect that the personal hearing intimations were, in fact, despatched from the office of the adjudicating authority. The claim of the learned Advocate that on earlier occasions the communications have been personally served on the appellant and the personal hearing intimations were not served personally may not deserve to be accepted. Intimations have been sent as provided for in the law. Taking totality of the circumstances, we are not, prima facie, convinced of the violation of principles ....