2011 (6) TMI 350

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....85.   3. The Central Excise Officers visited the unit on 21.11.03 for preventive checks. The unit was found closed on the day of the officers visit. The watchman available on the gate called, Shri Narayandas Patel, Excise Clerk of the unit who opened the gate of factory and produced the records for scrutiny of the officers. The officers found that there was no recorded balance of raw material or of finished goods, however, they found physical stock of imported viscose filament yarn weighing 21,929.00 kgs lying in the factory premises. Shri Patel could not clarify about the said physical stock, therefore the officers detained the stock of yarn and seized the records. In the course of further inquiry/scrutiny of documents records of uni....

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....Section 3(1) of Central Excise Act, 1944.   4. Show cause notice dated 26.08.04 was issued to demand duty on the unit of Rs.22,48,569/-, Rs.22,48,569 penalty on unit, Rs.22,48,569/- penalty on partner of the unit, Rs.10,0,000/- penalty on Shri Mangat Ramkishan Arora and Rs.10,0,000/- penalty on Shri Pradeep Kumar Natwarlal Shah. The case was adjudicated vide OIO No.41/ADC-AGS/OA/2005 dated 25.11.05 wherein demand of duty of Rs.17,89,939/- + Rs.34,775/- & Rs.4,23,885/- was confirmed under Section 11A of Central Excise Act, 1944 read with Rule 4 of Central Excise Rules, 2002. Penalty equal to duty of Rs.22,48,569/- was imposed on the unit under Rule 25 of Central Excise Rules, 2002, and penalty of Rs.22,48,569/- imposed on Shri Altaf Am....

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....- Notification No. 125/84-C.E., dated 26-5-1984, EXIM Policy 1997-2002, Para 9.10(b). - The clearances to DFRC holders and also to suppliers against foreign exchange cannot be treated on par with the clearances permitted by the Development Commissioner for sale to DTA. Since supplies in DTA against foreign exchange covered by para 9.10(b) shall be counted against NFEP/EP, these clearances cannot suffer Central Excise duty. Hence, Notification No. 125/84-C.E. is squarely applicable to these clearances. Moreover, even if duty is paid on these clearances, by virtue of the fact that they are considered as deemed exports vide Chapter 10 of EXIM Policy, the appellant would be entitled to the benefit of refund of Terminal Excise Duty. [para 5, 7] ....