COMMISSIONER OF CENTRAL EXCISE & CUSTOMS, DAMAN Vs. SARLA POLYESTER LTD (100% EOU) (YARN DYEING DIVISION)

JUDGEMENT

(1.) All the three petitions involve identical questions of facts and law and are, therefore, being decided by this common judgment. In the present petitions for the purpose of adjudication, wherever factual matrix deserves consideration, the same shall be drawn from Special Civil Application No.11296 of 2019.

(2.) The petitioner has challenged the order dated February 29, 2008 rendered by the Settlement Commission in Settlement Application No.227/ CEX/06/SC(MB), alleging inter alia that the Settlement Commission has exceeded its jurisdiction in exercise of its function. This Court on January 28, 2010, while admitting these matters had protected the petitioner by way of ad interim relief by staying the impugned order passed by the Settlement Commission and the jurisdictional Commissioner was directed to adjudicate the proceedings. All the three firms, namely, (i) M/s.Sarla Polyester Ltd., Vapi (hereinafter referred to as 'the SPL, Vapi'); (ii) M/s.Sarla Polyester Ltd., Silvassa (hereinafter referred to as 'the SPL, Silvassa') and (iii) M/s.Satidham Industries Ltd., Silvassa (hereinafter referred to as 'the SIL'), are sister concerns and their cases are interconnected.

(3.) A complaint came to be registered against the SPL, Vapi, a 100% Export Oriented Unit (EOU) and its group of companies i.e. SLP, Silvassa (100% EOU) and SIL (DTA Unit), by D.R.I., Surat on January 16/17, 2004, on having received the intelligence that the duty free polyester/ nylon yarn imported under 100% EOU Scheme by SPL, Silvassa was being diverted to SIL without payment of applicable duties and thereby contravening the provisions of 100% EOU Scheme.