2010 (9) TMI 282

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....anufacture of processed fabrics and readymade garments falling under Chapter 54 & 62 of the Central Excise Tariff Act. They manufactured and cleared certain goods for export, to the merchant exporter in terms of Rule 19 of Central Excise Rules, 2002, without payment of duty and against CT-1 certificates. 4. As per the investigations made by the Revenue, it was found that the goods were not actually exported by the merchant exporters but were diverted in the local market. Accordingly proceedings were initiated against the merchant manufacturers as also against the present respondents. Such show cause notices issued by the Revenue culminated into an order passed by the original adjudicating authority, vide which the demands of duties....

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....mitation. 7. In a separate proceedings the original order passed by the Assistant Commissioner was also challenged by the Revenue before Commissioner (Appeals). While disposing of the Revenue's appeal, the appellate authority observed that the appeals filed by the respondent stand already decided and in para 12 of the same it was observed that in case of failure on the part of the merchant exporters to pay duty, M/s. Shagun Processors would be liable to discharge the obligation as surety and to pay of that duty. As such Commissioner (Appeals) observed that having held M/s. Shagun Processors as liable to pay duty in term of the surety, in case of failure of merchant exporters to pay duty, nothing survives in the appeals filed by the....

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....s on the ground that the exporter has not submitted any proof of export for the goods cleared from the unit and has failed to fulfill his obligation. The above factual averment made by the Revenue is not disputed in the orders of the lower authorities. It is well settled law the demand of duties cannot be confirmed against two persons, in respect of the same transactions. Merchant exporters have admittedly executed the export bonds binding themselves to pay duty due on the goods, if not exported within six months. As such the prime responsibility for payment of duty is on the merchant exporters. However Commissioner (Appeals) in his impugned order as also in the earlier order passed on the assessee's appeal has categorically held that in ca....