TaxTMI 
TaxTMI 
2013 (9) TMI 56
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....ral Excise officers at 21, Dabuwala Compound, Bhatar, Surat, a premises registered as 100% EOU in the name and style of M/s. Sunrise Silk Mills for the manufacture and exports of Grey Fabrics and twisted yarn. During the search, the officers found the unit functional and also found unaccounted stock of 997 L.mts of fabrics (Polyester grey) and 456 Kgs of Polyester Filament Yarn. No statutory records were maintained in the premises. The unaccounted fabrics and yarn was seized and handed over to the manager of the unit under supratnama. 3. Statement of Shri Omprakash Sharma, Proprietor of M/s. Sunrise Silk Mills (100% EOU) was recorded on 29-6-2004. Shri Sharma deposed that he is no longer running the unit and that he surrendered the premi....
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.... No. 61 dated 5-4-2004 of M/s. CTX Textiles, Karanj. As per the said invoice, the goods were removed from Karanj at 12.00 Hrs. on 5-4-2004. Considering two hours time in travel, the goods would have reached the factory at about 2 PM on 5-4-2004, the time at which panchnama proceedings were going on. It appeared that the claim of the appellant was a cover up and the whole activity was unaccounted and clandestine operation in a 100% EOU. 5. Thereafter proceedings were initiated which has culminated after two rounds of litigations into confirmation of duty demand on polyester filament yarn and the grey fabrics found during the visit of the officers on the ground that these products were found in Shed No. 21 which was functioning as a 100% E....
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....he goods. Therefore it has to be held that the yarn which was seized by the department was the one which was supplied by M/s. CTX Textiles and had suffered Central Excise duty and therefore no duty can be demanded from the appellant. Further, as regards grey fabrics he submits that this was admittedly the goods which was manufactured on the day of visit of the officers and therefore was required to be accounted for at the end of the day only and therefore a view could not have been taken that this was unaccounted stock. In any case if it is indigenous production, the question of duty demand also does not arise on the grey fabrics and therefore there was no need for the appellants to make any false entries as regards production. 7. The le....
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....over the building back to the owner. To demand duty on the ground that the yarn was manufactured/obtained by a 100% EOU and the fabrics were manufactured by a 100% EOU, some evidence is required. In this case it is quite clear that it was the department who had permitted M/s. Sunrise Silk Mills to function as a 100% EOU and therefore even if the unit has not been debonded, there has to be some return or intimation filed by the 100% EOU. It is quite possible that unit would have ceased to function earlier but there has to be some return or intimation filed by them to either Customs or to Development Commissioner or even to the banks. Since the duty demand is being raised by the Revenue on the ground that goods were manufactured/obtained by 1....