Case Law Details
Fakhri Steels and Iron Vs Commissioner of Customs (CESTAT Delhi)
Held that revenue needs to establish that the goods lying or found in the shop/ godwon of the assessee are not duty paid.
Facts- During the course of search at M/s. NTPL it was alleged that unaccounted raw material was received by NTPL from clandestine manufacture and clearance thereof without payment of customs duty. NTPL cleared goods to some purchasers like M/s. Chamunda and M/s. Siddhi. Goods procured by M/s. Chamunda and M/s. Siddhi were further sold to different parties including M/s. Fakhri Steel (appellant).
Shri Hemant Sharma, Director of NTPL, has stated that major portion of the pipes removed without payment of customs duty were sold and delivered to the appellant.
Revenue issued show cause notice dated 07.08.2013 to M/s NTPL, its directors and others, including appellant, alleging inter alia that M/s NTPL, a SEZ unit was engaged in clandestine clearance of part of their production and accordingly duty was demanded from them and penalty was proposed on others including this appellant for alleged clandestine receiving and storage of goods, on which appropriate custom duty was not paid, allegedly removed by M/s NTPL clandestinely.
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