TaxTMI 
TaxTMI 
2016 (9) TMI 475
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....gaged in the manufacture of Texturised Yarn out of duty paid Partially Oriented Yarn (POY). On a visit to the factory premises of the Appellant on 08.06.2002, the Officers retrieved a private note book allegedly contained clearances without payment of duty. On completion of investigation, it was noticed that the Appellant had removed 26157.60 kgs of finished Textured Yarn clandestinely without payment of duty during the period from 01.04.2002 to 07.06.2002. Consequently, a Show Cause-cum Demand Notice was issued to them on 28.04.2005 for recovery of duty of Rs. 4,71,675.00 and proposition for imposition of penalty on the Appellant company; also personal penalty on the second Appellant. On adjudication, the demand was confirmed and equivalen....
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....s his contention that the details of POY received, consumed in the manufacture of textured yarn including the clearances of 26157.60 kgs during the said period had been submitted in the reply to the Show Cause Notice. It is their grievance that the authorities below, without any contrary evidence on record, erroneously rejected the purchase invoices issued by M/s Parsrampuria Synthetics Ltd. It is their argument that the quantity of POY mentioned in these invoices, had been duly purchased and payments were made through Account Payee Cheques. In support, they had also enclosed a Chartered Accountant s certificate about the purchase, receipt and consumption of the said material in their factory during the relevant period. Further, he submits ....
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....e benefit of the Notification. He contended that it is brought out in the SCN and OIO that the opening balance of POY shown in Form IV Register as on 01.04.2002 was only 4803.750 Kgs. Further, though the invoices of M/s Parsurampuria Synthetics Ltd are dated 12/16.01.2002, they are not entered in the Form IV Raw Material Register till the officers visit in June 2002, and that the balance sheet was prepared only 03.09.2002. 6. Heard both sides and perused the records. We find that the issue for determination revolves in a very narrow compass. It is an admitted fact that during the period from 01.04.2002 to 07.06.2002, the Appellant had manufactured and cleared 26,157.600 kgs of Textured Yarn without payment of duty. The principal issue whi....
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....ng his earlier statement dt.08.06.2002. To corroborate their version, in support, they have produced a Chartered Accountant s Certificate and relevant purchase documents. We find that the authorities below had not accepted the quantity of 23540.700 kgs mentioned against the three invoices issued by M/s Parsurampuria Synthetics in calculating the total quantity of POY received and consumed, and also observing that the same did not conform to the quantity of removal of Textured Yarn i.e. 26,167.600 kgs even after adding 1.75% as the quantity towards oil gain, which works out to only 23,952 kgs. In other words, both the authorities below had arrived at the finding that the Appellants had not adduced sufficient evidence to establish that the PO....