2013 (12) TMI 403

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....ORDER As per facts on record the appellant is a 100% EOU engaged in the manufacture of ready-made garments. Their factory was visited by the Central Excise Officers on 11-2-2002 and 12-2-2002, who conducted various checks and verifications. It was found that 35 sewing machines along with a cutter were installed in the unit at the time of the visit. However the said machines were not working at th....

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....g the ready-made garments from the open market and exporting the same. 2. After due adjudication, the Commissioner vide impugned order confirmed duty of Rs. 14,74,077/- in respect of the fabrics found in the factory premises and seized by the officers. He also confirmed the interest and confiscated the said fabrics with an option to the appellant to redeem the same on payment of redemption f....

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....lly diverted in the local market. Inasmuch as the fabrics in question were still found in the factory of the appellant, no demand of duty can be confirmed in respect of the same on the ground that the previous consignments of imported fabrics stand diverted by the appellant. No presumption can be made that the said present fabric was also likely to be diverted. Admittedly the appellant's factory h....

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....goods in the said 100% EOUs cannot be treated as having been removed for home consumption so as to require any payment of duty leviable thereon. By applying ratio of the above Larger Bench decision to the facts of the instant case and in view of the admitted position that the fabrics in question were still in the 100% EOU, no duty liability can arise in respect of the same. 5. In view of the....