TaxTMI 
TaxTMI 
2015 (11) TMI 757
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....ore, all the applications are taken up together for consideration for waiver of pre deposit. 3. The facts of the case are that the applicants were engaged in manufacture of yarn, shawl, blankets etc. by importing raw materials on the strength of advance license (duty free) for manufacturing of their final product and the resultant product was required to be exported to discharge the export obligation. In this background, 21 advance licenses were issued to M/s. Ess Kay International, 2 advance licenses were issued to M/s. Subal export and 5 advance licenses were issued to M/s. Chirag Export as manufacturer exporter under actual user condition to manufacture acrylic shawls, woolen blankets / acrylic blankets etc. The applicants discharged th....
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....arge their export obligation. In these circumstances, they are required to pay duty on the imported goods. In this background, the show cause notice was issued to the applicants to demand duty from the applicants along with Shri Sheetal Kumar Vij jointly or severely. The matter was adjudicated. Duty was demanded from the applicants namely M/s. Ess Kay International, and its proprietor / partner Shri Rajender Arora, Ms. Vishakha Arora severely or jointly along with interest. Further, duty was also demanded from Shri Subal export and its proprietor / partner Shri Subal Khanna and Shri Rajender Arora jointly or severely. Duty was also demanded from M/s. Chirag Export and Shri Rajinder Arora jointly or severely. Penalties on all the applicants ....
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....ed on the case of Vinod Solanki Vs. UOI 2009 (233) ELT 157 (SC) to say that in the case of Vinod Solanki (Supra) there was no allegation that the department has used any threat, force, coercion, duress or pressure whereas in this case the statements have been retracted alleging that he was tortured during the custody of the investigating team. A medical report is also available on record. Therefore, the decision in the case of Vinod Solanki (Supra) is not applicable to the facts of this case. Moreover, the decision in the case of Kalvert Foods India Ltd. 2001 (270) ELT 643 (SC) and Telestar Travels Pvt. Ltd. 2013 (289) ELT 3 (SC) are not applicable to the facts of this case as statement have been retracted by the applicants on first availab....
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.... on a letter from the Consulate General of India in Dubai wherein the valuation was shown less than in shipping bills at the port of dispatch. No such evidence has been provided to the applicants and mentioned in show cause notice and this allegation is only a bald allegation. He further submits that as the applicants have discharged export obligation and BRCs have been received after due examination of these documents, the DGFT has accepted the export obligation and issued redemption certificates. Therefore, there is no scope of confirmation of any amount of duty. All these certificates were produced before the adjudicating authority but the adjudicating authority has not given any credence to same. He heavily relied on the decision of thi....
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....he actual user condition and it has been established that the applicants were not having any manufacturing facility and the licenses were not endorsed in the name of the job worker also, who manufactured the resultant product. Therefore, the applicants have failed to make out a case of complete waiver of pre deposit. He further submits that the duty has been demanded in this case from the firm or the proprietor jointly and severely which means that only the proprietor of the firm is required to pay duty. Therefore, the case laws relied upon by the Ld. Counsel are of no help. He further submits that although it was alleged in the show cause notice that Shri Sheetal Kumar Vij is the kingpin but after investigation, it was found that Shri Shee....
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....d in some cases some goods have been manufactured on job work basis by them and to that effect they produced certain vouchers before the adjudicating authority. It is also contented by the Ld. Counsel that they have discharged export obligation and redemption certificate has been issued by the DGFT. It is also submitted by the Ld. Counsel that when export obligation has been accepted by the DGFT and if the applicant is not having manufacturing facility in their factory, the goods can be manufactured on job work basis and the export obligation can be discharged in the light of the decision of Honble High Court of Punjab and Haryana in the case of Rakesh Nayar (Supra) and also pleaded the financial hardship. All these evidences or the conten....