2006 (12) TMI 524

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....the Appellant. Shri U.H. Jadhav, JDR, for the Respondent. ORDER The appellants challenge the demand of duty of Rs. 5,69,075/- and penalty of equal amount, which has been confirmed on 142268.79 Linear Meters of processed fabrics which was not accounted for and which was not shown to have been cleared by the respondents herein who are processors of man-made fabrics on payment of duty. The a....

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....use the percentage of shrinkage was very high in some case, it cannot automatically be concluded that the shortage of fabrics is due to their having been cleared without accountal in statutory record and without payment of duty. The appellants explain the shortages as due to shrinkage of fabrics during the processing. The department has jumped to the conclusion that the appellants have clandestine....