2015 (10) TMI 195

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....0% EOU. Unit I was engaged in the manufacture of Polyester Texturised Yarn (PTY) out of POY, out of duty free material by direct import and from the local market under CT3 certificate. Unit II was engaged in the manufacture of Polyester Twisted Yarn, out of Polyester Yarn, which was obtained duty free by direct import as well as from the local market under CT3 certificate. 3. A Show Cause Notice dtd 2.11.2000 was issued by the Deputy Commissioner, Central Excise and Customs, Division V, Surat I, to the Unit No I proposing demand of central excise duty of Rs. 15,74,613/- alongwith interest and penalty on the ground that the Unit No I a 100% EOU had cleared PTY as DTA sale to M/s Home Textiles, Moradabad without payment of Central Excise dut....

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....r the investigation by the DRI officers, another show cause notice dtd 31.5.2004 was issued by the Additional Director, DRI, Zonal Unit, Ahmedabad, proposing a demand of Central Excise duty, which is equivalent to aggregate of customs duty leviable on raw-materials ie. Polestar Texturised Yarn amounting to Rs. 14,34,715/- alongwith interest and penalty, confiscation of goods. By adjudication order dtd 2.8.2006 the adjudicating authority confirmed the demand of duty of Rs. 14,35,715/- forgone on 36584 kgs of raw-material Polyester Texturised Yarn in terms of proviso to Section 3(1) of Central Excise Act 1944 read with proviso to Section 11(A) read with Notification No 1/95 CE dtd 4.1.1995. It has also imposed redemption fine and penalty alon....