2024 (9) TMI 1616

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....the case are that the appellant M/s. Indian Polyfins Ltd. (100% EOU) is engaged in manufacturing of articles of texturized yarn and grey fabrics falling under chapter 54 of the Central Excise Tariff Act, 1985. During the physical verification of the stock of goods lying at the unit of the appellant with the statutory records maintained by them, shortage of 25,187 Kgs of imported Polyster Filament yarn (PFY) was found. Shri Vijendra Arya, director of the appellant stated that quantity of 25,187 Kgs of PFY were transferred to the Indian Polyfins Ltd. (Sizing division). Revenue alleged that out of the 25,187 Kgs of PFY, only 2,028 Kgs of Polyster Filament yarn was found and remaining 23,159 Kgs of PFY had been cleared clandestinely through the....

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....ms duty cannot be solely confirmed on the basis of statement of the director Shri Vijyendra Arya without corroborating the said statement with the evidences. In this context he placed reliance upon the judgment of Rochees Impex Pvt. Ltd. vs CCE, Jaipur [2004 (174) E.L.T. 254 (Tri.- Del.)] 2.2 He also submits that the demand is time barred as show cause notice has been issued under section 28(1) of the Customs Act, 1962 which is for normal period of limitation and without invoking extended period of limitation in terms of section 28 (4) of the Customs Act, 1962. The show cause notice dated 16.01.2008 has been issued after the period of five years from the date of import of Polyester Filament Yarn. He placed reliance on following judgments....

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....d down the parameters to prove clandestine removal of goods which is reproduced hereunder : - " 40. After having very carefully considered the law laid down by this Tribunal in the matter of clandestine manufacture and clearance, and the submissions made before us, it is clear that the law is well-settled that, in cases of clandestine manufacture and clearance, certain fundamental criteria have to be established by Revenue which mainly are the following : (i) There should be tangible evidence of clandestine manufacture and clearance and not merely inferences or unwarranted assumptions ; (ii) Evidence in support thereof should be of: (a) Raw materials, in excess of that contained as per the statutory recor....