Per T.K. Jayaraman : These appeals have been filed against the OIO No. 03/2000 dated 25.1.2000 passed by the Commissioner of Customs, Bangalore.

2. The brief facts of the case are as follows:

The appellant is a 100% EOU set up to manufacture mulberry silk fabrics. They were permitted to import raw silk yarn duty free. Intelligence was received that the appellants resorted to diversion of the imported duty free material in violation of the provisions of 100% EOU scheme. Searches were conducted at various premises. There was difference between the stock of raw silk and the finished goods, which were available at various locations in the factory and the book balances. The statements of Shri U.B. Venkatesh, Managing Director of the Company were recorded under Section 108 of the Customs Act. In the statement he has admitted diversion of raw silk imported duty free to the local market. There was also evidence of manipulation of the productions figures in view of diversion of the raw silk to local market. These facts have been admitted by Shri Venkatesh. The appellants had deposited a sum of Rs. 18 lakhs vide TR 6 Challan dated 15.5.1998 and 16.5.1998 towards customs duties and other l