MADURA COATS PRIVATE LTD. Vs. CCE

JUDGEMENT

(1.) WE have heard both sides on the appeal of the assessee against confirmation of demand of duty of Rs. 43,35,307/ - together with interest and penalty of equal amount under Section 11AC of the Central Excise Act, 1944.

(2.) THE case of the department, in brief, is that the EOU had clandestinely cleared grey and processed fabrics in excess of the quantity covered by invoices issued by the said unit in respect of DTA clearances to Aladiyur Unit, and two third parties. The case of the department is built on Monthly Manufacturing Reports (MMRs). We find that in respect of charge of clandestine clearance of yam in excess quantity covered by invoices issued by the EOU in DTA, the excise authorities initiated proceedings by issuing show -cause notice dated 12.9.01 covering the period November'96 to December'99; the proceedings initiated under the notice were dropped by the Commissioner (Appeals) vide an order dt. 12.7.04; the appeal of the Revenue bearing No. E/1283/04 came to be dismissed by the Tribunal by its Final Order No. 1493/05 dt. 11.11.05 holding, inter alia, that the MMRs were internal reports prepared on the estimates only and not meant to satisfy any statutory requirement. The relevant paragraph of the Tribunal's earlier order is reproduced herein below: