2019 (2) TMI 1168

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.... EOU) were searched on 20/21.06.2003; statements of various persons connected to both the units including the partners were recorded. As a follow up action the premises of supplier M/s. Hema Exports was also conducted on 25.06.2003 and statement of partner of the unit was also recorded. In the investigation, it was established that the appellant had shown paper transactions of the duty free goods procured from the supplier M/s. Hema Exports without physically receipt of the goods on monetary considerations from the said supplier who used to divert goods to local market. After completion of investigation and issuance of show cause notice dated 31.03.2005 to various offenders/ notices including the appellants resulting the adjudication of the....

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....he open market in Surat and by showing deemed export by preparing fake documents like AR3A, Central Excise invoice purportedly showing the clearance to appellants unit M/s. Al-Amin Exports and M/s. Sunshine Overseas both 100% EOUs did not receive any goods against the aforesaid AR3A, Invoices. She submits that without involvement of both the appellants it would not have been possible for M/s. Hema Exports to divert the goods in the open market, therefore, penalty under Rule 26 is rightly imposed on the appellants. 4. I have carefully considered the submissions made by both the sides and perused the record. I find that limited issue to be decided in the facts and circumstances of the case is whether the appellants are liable to penalty un....