2018 (3) TMI 614

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at the Appellant were processing Blowing Wrapper Cloth since November 1982, but were not accounting the same in the statutory records and were also clearing the same without payment of duty. During the investigation, 610 linear metres of processed Blowing Wrapper cloth was also recovered on the ground that the same has been kept in concealed manner. Statement of Shri Anil J. Mehra, partner of the appellant firm, was recorded wherein he stated that the Wrapper was supplied to them by their sister concern, M/s J.K.T. Fabrics Pvt Ltd and M/s Anil Traders. That though the goods were processed and sold by, them the invoices were raised in the name of the suppliers of gray wrapper. That though the assessee claimed to have commenced processing act....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....med the demand of Rs. 18,49,114/- and also imposed a penalty of Rs. 2 lakh upon the Appellant. He also imposed redemption fine of Rs. 1 lakh in lieu of confiscation of land & building, plant & machinery used in the manufacture, storage and removal of non-duty paid goods. Being aggrieved with the impugned order dt 25.10.2005, the Appellant are in appeal before us. 2. Shri Chirag Shetty, Ld Counsel appearing for the Appellants submits that the demand for the period upto January 1986 has been wrongly confirmed against them as the Revenue has not produced any direct evidence to show that the Appellant were processing Blowing Wrapper Cloth before February 1986, and hence the demands for the period November 1981 to February 1986 has been wrong....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ication No. 175/86-CE dt 1.3.1986. The same has not been extended to them by the adjudicating authority on the ground that their registration as SSI unit is for Art Silk and not for the impugned products. He submits that SSI Status is not dependent on the product or article of manufacture, but the only aspect relevant for the SSI status was the level of investment and the turn-over. The benefit of cum duty price and input credit has also not been extended to them. He submits the demands are also time barred as they never intended to evade duty, therefore, no penalty can be imposed upon them nor confiscation of goods is correct. 3. Shri A.B. Kulgod, Ld. A.C. (A.R.) appearing for the revenue supports the impugned order. 4. Heard both th....