2012 (11) TMI 238

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....ri R.K. Khanna, C.A., for the Respondent. [Order per : Mathew John, Member (T)]. - The Respondent is a 100% EOU manufacturing polyester viscose yarn. They supplied such yarn to M/s. Punjab State Handloom Weavers Apex Cooperative Society Ltd, (hereinafter referred to as "WEAVCO") claiming exemption under Notification No. 4/97-C.E., dated 1-3-1997. This exemption was available if such yarn was....

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.... any clearances from 100% EOU unless specifically provided in the Notification. Therefore, Revenue was of the view that the clearances made by claiming exemption under Notification No. 4/97-C.E. was with intention to evade payment of duty. Revenue demanded duty amounting to Rs. 6,78,932/- along with appropriate interest. Further penalty under Section 11AC was also proposed. On adjudication of the ....

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....ed Notification No. 4/97-C.E. for the reasons that the notification was not applicable to them and also for the reason that the end-use specified in the notification was not complied with and since goods were diverted for use other than the one specified in Notification No. 4/97-C.E. Regarding eligibility for Notification No. 8/97-C.E. he submits that the respondents use both indigenous raw materi....

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....de the submission that they did not import any polyester staple fibre or viscose staple fibre during 1997-98 and 1998-99. It was also pointed out that the factory was working under the physical control of excise officers and the excise officers had certified on the AR-4 that the goods were manufactured from indigenous raw material. So they say that they were eligible for exemption under Notificati....