TaxTMI 
TaxTMI 
TaxTMI 
2022 (1) TMI 392
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....see. However, the appellant at the Silvassa unit has procured 124.57MT and 199.23MT inputs viz. continuous cast copper wire rod at Rs. 46,08,34,018/- and 3,32,44,604/- respectively involving total duty foregone Rs. 6,61,05,308/-. 1.1 A Show Cause Notice dated 20.07.2013 was issued to the appellant and also to Shri. D.P Shrivastav Authorized Signatory of KEC International Ltd wherein it was contended that since no supporting manufacturer was endorsed by the Regional Authority and procurement under the licences were made before exports, duty free procurement was to be done mandatorily by the Mysore unit of the appellant only and not by their Silvassa unit which was not endorsed by the Regional Authority. Further, the proof of exports (Shipping bills) in respect of exports made against licence dated 19.03.2008 did not even depict the name of the appellant as supporting manufacturer. This has resulted in irregular availment of benefit of duty free procurement under advance licence to the extent of Rs. 6,61,05,308/-. 1.2 In the Show cause notice it was alleged that as per para 4.1.5 of the FTP (2004-09) advance authorization and raw material imported thereunder will be with actual....
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....herefore, the entire demand is under extended period. The Show cause notice as well as the Order-In- Original alleged that the appellant has not disclosed the facts to the department that they have procured the duty free material from the M/s Sterlite Industries (I) Ltd against invalidation of advance licence. On this basis the larger period was invoked. 4.1 We find that the above observation made by the Adjudicating Authority is absolutely wrong on the basis of the records. The appellant has intimated to the department vide letter dated 21.11.2008 for procurement of the material from M/s Sterlite Industries (I) Ltd against invalidation of advance authorization. Along with said letter the appellant had also submitted an application under Central Excise (Removal of goods at concessional rate of duty for manufacture of excisable goods) Rules, 2001. The copy of advance licence as well as general bond was submitted. The relevant letter dated 21.11.2008 and the application under Central Excise (Removal of goods at concessional rate of duty for manufacture of excisable goods) Rules, 2001 are scanned below: From the above letter along with the application it is crystal clear that th....
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.... are enclosing the following documents;- 1) Application under rule 3 of the Central Excise (Removal of goods at concessional rate Or NIL rate of duty) Rules, 2001. 2) Input/Output Ratio duly Certified by Chartered Engineer. 3) Copy of Advance License. 4) General Bond. For RPG CARLES D For, RPG CABL Authorised Signatory Authorised Signatory ANAB ACCREWED Document 2 Asian RPG CABLES LIMITED Plot No. 273/4, Demni Road, Dadra, Silvassa - 396 191. (D. & N. H.) Tel.: 0260 2668518, 2669769 Fax: 0260-2668519 129 (115) UKAS WPG CABLES LTD SENAS ANAB ACCREDITED PG CABLES SEA M/s. RPG CABLES LTD.-Dadra. Silvassa CALCULATION SHEET FOR CERTIFICATE UNDER RULE 3 OF THE CENTRAL EXCISE (Removal of goods at concessional rate or NIL rate of duty)Rule 2001. Name of Raw Materials: Continuous Cast Copper Rod. Commodity Code: 74071090. Invalidation Letter No. 0359010404 dt. 04.09.2008. & 0359010784 dt. 07.11.2008 Total Quantity required: 1150.000 M.T. Value of Above: 432500000 Excise Duty @ 14% on above: 60550000 Education Cess @2% on above: 1211000 Higher Education Cess @ 1% on above 60....
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....0000/- 60550000/-1211000/- 605500 M.T. rupces is NIL. Rs.6,23,66,500/-(Rs.6,05,50,000 + 12,11,000 + 6,05,500) only and the estimated total duty on the subject goods payable at the time of removal under above notification is CS Scanned with CamScanner KEC MUMBAI) LITE I DUSTRIES CHINCHPADA MATERIAL IN นายas ED 93 ner 2008 Entry Me Time 18/03/12108 PANKAS Document 4 We also hereby undertake, To use the subject goods Continuous Cast Copper Wire used for the specified purpose of manufacture of Low Voltage Underground Cables and to follow any other condition in the said notification. b) To pay on demand; in the event of failure to comply with (a) above, an amount equal to the difference between the duty leviable on such quantity of the subject goods but for the exemption under the aforesaid notification and that paid at the time of removal. We have also executed the necessary bond amounting to Rs.6,23,66,500/- dated 11-2008 vide Sr. No. Bond for your acceptance. 021208 Opening Balance: 6,23,66,500/- Less Annexure 6,23,66,500/- Balance Avai....