2018 (12) TMI 12

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....nt ORDER Per: Ramesh Nair These appeals are directed against order-in-original No. OIO-03/MP/2008 dated 25.02.2008 whereby the demand of Central Excise and Customs duty total aggregating to Rs. 16,99,92,134/- was confirmed on the duty free imported and indigenous raw material as calculated in annexure 'A' and 'B' to the show cause notice against M/s. Prime Poly Weaves Limited (PPL for short), in addition to imposition of penalties and redemption fine against M/s. PPL. Penalties under Rule 26 was imposed on various persons whose details are as under:- S/ No. Name of Appellant Status of appellant Amount of penalty 1. Shiv Textiles Job Worker Rs. 50 Lakh 2. Shivani Textiles Job Worker Rs. 50 Lakh ....

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....hat the job work of duty free yarn were planned by M/s. PPL. He submits that job worker's premises were given on rent to M/s. PPL on rent, on machine basis. The job work challans were provided by M/s. PPL and for the transaction of goods, challans were prepared by M/s. PPL only on which the signatures of the job workers were obtained in advance on blank challans. As regards the job worker's documentation, the appellants (job workers) are not involved, the entire planning was done by M/s. PPL therefore, the appellants (job workers) cannot be held responsible for evasion of duty and consequently no penalty should be imposed under Rule 26. He submits that as regard the appeal of M/s. Regent Overseas Pvt. Limited, show cause notice as well as t....

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....llans were also signed by those job workers. Despite the fact known to them that there is only paper transaction is being done, the job workers have signed the blank challans which were used by M/s. PPL for showing the job work. Therefore, the appellants (job workers) mentioned at serial No. 1 to 7 were actively involved in facilitating M/s. PPL for clandestine removal of duty free yarn. Accordingly, they are rightly liable for penalties under Rule 26 / 209A. As regards the other appellants, M/s. Regent Overseas Pvt. Limited and M/s. Pooja Tex Prints Pvt. Limited to whom M/s. PPL had shown clearance, had also actively and knowingly connived with M/s. PPL in diversion of duty free raw materials inasmuch as manipulating the documents to show ....