TaxTMI 
TaxTMI 
2017 (7) TMI 337
X X X X Extracts X X X X
X X X X Extracts X X X X
....on disposal. 2. The facts of the case are that M/s.Jeevan Diesel and Electricals Ltd., a 100% Export Oriented Unit (hereinafter referred to as JDL-EOU) (appellant in Appeal No.E/40322/2015) are registered for manufacture of Diesel Generating sets and parts of DG sets. They procure inputs both by way of imports and domestically without payment of duty. Appellants have also a DTA unit adjacent to the EOU (hereinafter it is referred to as JDL-DTA). Pursuant to a visit by the officers of the department on 09.04.2013, the following facts emerged : (i) JDL-EOU have no separate power connection. They draw power from JDL-DTA. (ii) No capital goods were installed in JDL-EOU except one overhead crane. Only 81 nos. of 'Perkins' make Engines....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on payment of fine of Rs. 45 lakhs. Penalty of Rs. 15 lakhs was imposed on JDL-EOU under Rule 25 and penalty of Rs. 1 lakh imposed on JDL-DTA under Rule 26 ibid. Aggrieved, appellants have filed this appeal. 4. Today, when the matter came up for hearing, on behalf of the appellant, Shri K.S. Jain, their Managing Director, in the first place, draws our attention to MA No.E/COD/40241/2017 seeking condonation of delay in respect of Appeal E/40898/2017 filed by them. He submitted that there is a delay of 900 days in filing the appeal in respect of JDL-DTA. The reason for the delay was that they were under the impression that a common appeal would suffice for both JDL-DTA and JDL-EOU. Once they realized that there is a need for filing separate....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce, the need for requirement for capital goods did not arise. 9. Heard both sides and have gone through the facts. 10. Discernably, SCN is issued only on the allegation of clandestine removal of raw materials from JDL-EOU to JDL-DTA, without any approval from concerned authorities. There is no allegation that the goods so removed have been found thereafter diverted for sale or were otherwise used by the DTA unit to manufacture their own goods. In fact, from the SCN itself, it clearly emerges that the goods so found removed from JDL-EOU were very much located and detained in JDL-DTA unit. In the circumstances, taking note of the fact that both the units are adjacent to each other under a common management, the averment that removal of good....