2017 (8) TMI 1269

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.... various industrial consumers at different rates. It also emerged that in certain occasions they apparently cleared the said chemicals at much lower rate than the normal value even to the same buyer due to the clearance effected on deemed export basis against Advance Release Order (ARO) given by the buyer. From the documents recovered and statements recorded, it appeared that the assessee has effected duty free import of raw material viz., methanol and calcium carbide and in turn manufactured and cleared their finished goods, Methylene Chloride and Chloroform on deemed export basis, at a lesser price. The Department took the view that the Customs duty, CVD and SAD duty elements exempted vide Customs Notification Nos.47/2002-Cus dated 22.04.....

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....submissions which can be broadly summarized as under:- a) Pursuant to intimation dated 10.09.03 by the department seeking production of records for internal audit, they had, through their letter dated 30.09.2003 informed that the customers can normally import Methylene Chloride, Chloroform, Carbon Tetra Chloride duty free against Advance License Scheme for the purpose of manufacture of goods for export. Instead of doing so, the customers can also buy the material from the Appellant at the international prevailing price. It was also informed to the department that the appellant is following precautions of receiving valid ARO or Back to Back Letter of Credit opened by the customer s bank invalidating their Advance License to prevent the deem....

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....ion called was supplied by them. Hence, the ld. Advocate prayed that the proceedings resultant in the impugned order is set aside on the grounds of limitation. 2.3 Ld. Advocate also submitted that the appellants have been all along filing ER-1 monthly returns, wherein all the prescribed information has been intimated to the department. 3. On the other hand, Ld. AR, Shri S. Govindarajan, appearing on behalf of the Department, supports the adjudication. He draws attention to para-15 of the impugned order, wherein the adjudicating authority has analysed and found that the issue involves suppression of facts and thus extended period is invokable. 4. Heard both sides and gone through the facts. 5.1 What is not disputed is that the entire pro....

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....cise audit of appellant, at regular intervals and the latter claim to have provided necessary information as requested from time to time. ARO copies had also been made available to the department vide letter dated 01.02.05. 5.5 We find that while many of these contention of the appellant with regard to limitation have been taken note of by the adjudicating authority, however, they have been summarily brushed aside without any justifiable explanation. Surprisingly, the adjudicating authority has made an observation that visit of officers for routine checkup and audit does not debar the invocation of larger period if new ground comes to law, which was not revealed by the assessee to the department. However, the adjudicating authority has not....