2018 (1) TMI 698

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....know. 2. The facts leading to filing of this appeal are, in brief, as under:- 2.1 M/s Shamken Spinners Ltd., Kosikalan, Mathura (hereinafter referred to as the Appellant company) are a 100% EOU engaged in manufacture of spun cotton yarn, spun yarn of synthetic fibers and spun yarn of blended fibers for export. The goods being manufactured fall under Chapter 52 and 55 of the Central Excise Tariff and would attract excise duty when cleared into DTA. Shri V.P. Yadav is the General Manager (Tech.) of the Appellant Company. For manufacture of synthetic spun yarn and polyster cotton blended yarn, polyester staple fibre (PSF) was being procured by the Appellant Company from M/s Indo Rama Synthetics (I) Ltd. free of duty. Scrutiny of invoices of ....

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....under Section 11AB; (b) imposition of penalty on the Appellant Company under Section 11 AC of Central Excise Act; and (c) imposition of penalty on Shri Yadav, General Manager (Tech.) of the Appellant Company under Rule 26 of the Central Excise Rules, 2002. 2.3 The show cause notice was adjudicated by the commissioner vide impugned Order-in-Original dated 29.01.2010 by which- (a) the duty demand of Rs. 56,63,820/- was confirmed against the Appellant Company along with interest; (b) penalty of equal amount was imposed on the Appellant Company under Section 11 AC, and (c) penalty of Rs. 1,00,000/- was imposed on Shri V.P. Yadav under Rule 26 of Central Excise Rules, 2002. 2.4 Aggrieved by the above order, these appeals have been fi....

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....icy and that said Explanation (ii) shall treat such supply as imported goods and therefore condition of Sl. No.3 of the said notification is not satisfied. 5. We have carefully gone through the contentions from both the sides and perused the records and the relevant notification. It is undisputed fact that M/s Indo Rama Synthetics (I) Ltd. has availed benefit of deemed export under said paragraphs of the Exim Policy and therefore, under said Explanation (ii) the supply received by appellant company were imported goods. Therefore, we hold that condition under Sl. No. 3 is not satisfied and therefore the benefit of exemption at Sl. No.3 is not admissible to the appellant company. For the purpose of appreciation said Explanation-II and said C....