2017 (1) TMI 546

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.... & Regulation) Act, 1992, for recovery of Rs. 1,72,42,235 allegedly short-paid on clearances of yarn into the Domestic Tariff Area (DTA) during May 2003 to March 2004. Appellant contended before the adjudicating authority that the clearance of these goods were at the applicable rate of duty of Central Excise and hence there has been no short-payment.  2. The adjudicating authority did not agree with this contention as notification no. 8/97-CE dated 1st March 1997, substituted by notification no. 23/2003-CE dated 31st March 2003 (at serial no. 3), predicated the eligibility to clearance at the rates of central excise duty only upon such clearances as were manufactured from domestically procured raw materials and held the appellant to....

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....he impugned order. Reliance has been placed by Revenue on the decision of the Hon'ble Supreme Court in Nahar Industrial Enterprises Ltd v. Union of India [2004 (170) ELT 518 (SC)]. 6. We have perused the contention of appellant that they have convincing proofs of domestic procurement of raw materials. We, however, do not feel that mere procurement of raw materials entitles them to eligibility to notification no. 23/2003-CE at serial no. 3 without it being put to use for such manufacture. No evidence has been submitted of the separate accountal and issue of raw materials in the manufacture of goods that were cleared domestically. This submission is not backed by any proof of procurement of all raw materials from domestic sources and, ....