SWAGAT SYNTHETHICS Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners-assessees have challenged an order-in-original dated 28-2-2017 as at Annexure D to the petition in following background :

(2.) Petitioners have set up a 100% Export Oriented Unit at Kandla KFTZ. Two show cause notices dated 15-1-2003 and 28-2-2003 came to be issued against the petitioners in connection with the activities carried out by the petitioners in the said unit mainly alleging that the petitioners had cleared certain processed fabrics in domestic tariff area without payment of duty. For reasons which are not apparent on the record, these two show cause notices were kept dormant which in the department's parlance is referred to as 'the call book'. Yet another notice dated 7-6-2007 came to be issued making fresh allegations of similar unauthorized diversion of goods.

(3.) The department undertook the adjudication of only third such show cause notice viz. one dated 7-6-2007. The adjudicating authority passed an order dated 16-1-2013 confirming the duty demand with interest and penalty. The petitioners and the other noticee, who have been visited with present notice, therefore, challenged the same before the Tribunal by filing three separate appeals. The Tribunal disposed of such appeals by an order dated 13-2-2014 and remanded the proceedings for fresh consideration and disposal in view of breach of principle of natural justice.