METALMAN INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal is by the assessee against the Order dated 30.6.2011 passed by the CESTAT rejecting the appellant's appeal.

(2.) Appellant industry is registered with Central Excise Department and is engaged in manufacturing Flat rolled products of Iron and Steel as mentioned in para 7.1 of the petition. Petitioner has a manufacturing unit in the SEZ area Pithampur. On the basis of intelligence report, petitioner premises at Pithampur were searched and 214 cartons of Partially Oriented Polyester Yarn(POY) without any payment of duty were discovered and seized. Each carton was containing 4 spools of POY besides 43 spools which were found in loose condition. The Total quantity of the Yarn was 89338.31 Kg valued at Rs. 3,57,532/-.At the time ofsearch and seizure one Mr. Vijay Hardiya Excise Assistant was present on behalf of the petitioner, therefore, custody of seized material has handed over to him on Supurdginama. This was followed by a notice to show cause against confiscation of seized article U/s.111 r//w 118 of the Customs Act, 1962; and demand for payment of customs duty together with penalties.

(3.) In the reply, appellant came out with case that seized goods were purchased by their Mumbai Unit from M/s. Sonal Garments (India) Pvt. Ltd. Mumbai and the same were transferred from, Mumbai to their Pithampur Unit. Upon equinity, this story was disbelieved by the Dy.