TaxTMI 
TaxTMI 
2008 (11) TMI 263
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....tatutory appeal is provided under Section 130 of the Customs Act, 1962, on a substantial question of law, we have heard learned for the petitioners on merits. 3. The petitioner no. 1 is a proprietorship concern of petitioner no. 2 and is a 100% Export Oriented Unit (EOU). It imported 18 consignments of polyester knitted fabrics and also procured 4 consignments of the same material duty free from units in Domestic Tariff Area under CT-3 certificate. The duty free material so imported was required to be used for manufacture and export as per the Scheme framed under the provisions of the Customs Act. However, on inspection by the Officers of the department, it was found that imported stock/locally procured materials were diverted to the marke....
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....e communications have been personally served on the appellant and the personal hearing intimations were not served personally may not deserve to be accepted. Intimations have been sent as provided for in the law. Taking totality of the circumstances, we are not, prima facie convinced of the violation of principles of natural justice. On merits of the case, prima facie, we find that on the date of visit by the officers, there was no evidence for any manufacturing activity; that there was admission by the proprietor of M/s. Singh Overseas regarding diversion of the duty free materials procured by the 100% EOU; that the export consignments appears to be of very poor quality going by the wide variation in grammage recorded by the Commissioner. ....