2018 (3) TMI 1073

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....s of suiting and shirting fabrics. Statements were recorded and various other godown as well as the residential premises of the proprietor of the appellant was also put to search and investigators were made. On the basis of the same, Revenue officer entertained the belief that the fabrics in question were imported by various persons holding advance licenses and instead of using the same in the manufacture of the goods for export, the same were diverted in the local market. The appellant was purchaser of the said diverted fabrics. 2. It is seen that a part of the fabrics could be established to have actually been imported by M/s Krishna Trading Co., Surat and M/s A.B. International, Delhi free of duty in terms of the advance licenses held....

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....at admittedly a separate proceeding stand initiated against the appellant in respect of that quantum of fabrics, for which the Revenue has been able to establish that the imports were made by the advance license holder and instead of utilizing the fabrics for the export of final product, the same stand diverted in the local market. In the present case, the proceedings related to the balance quantity of fabrics seized from the appellant's godown, in respect of which no such evidence are available. The Commissioner in his impugned order has himself observed that the case of the Revenue is based upon the circumstantial evidence. On being questioned as to what circumstantial evidences are available with the Revenue, learned AR clarifies that in....