2015 (12) TMI 7 - AT - Central Excise

Removal of semi-finished goods for certain purposes without obtaining requisite permission under Rule 16B of the Central Excise Rules, 2002 - Held that - application was filed and the Commissioner did not act upon the same immediately and the appellant cleared the goods during the pendency of decision on the said application. In any case the permission having been granted by the Commissioner in the relevant period, the Revenue s objection that the said permission was not available at the time when the goods were cleared cannot be sustained. - Decided against Revenue.

Summary

Issues involved:
1. Permission under Rule 16B of the Central Excise Rules, 2002 not obtained.
2. Appeal against the order passed by the Commissioner (Appeals).
3. Imposition of penalty by the original adjudicating authority.
4. Grant of permission by the Commissioner after initial rejection.
5. Clearance of goods during pendency of permission decision.
6. Revenue's objection regarding availability of permission during relevant period.

Analysis:

1. The main issue in this case is the failure to obtain permission under Rule 16B of the Central Excise Rules, 2002. The respondent, engaged in manufacturing steel ingots, cleared goods for rolling on a job work basis without the required permission, leading to proceedings initiated by the Revenue.

2. The appeal was filed against the order passed by the Commissioner (Appeals) who favored the respondent after considering that the necessary permission was eventually granted by the Commissioner, even though initially rejected.

3. The original adjudicating authority confirmed the demand and imposed a penalty due to the absence of the required permission. However, the Commissioner (Appeals) found in favor of the respondent after the permission was granted subsequently.

4. The Commissioner's decision to grant permission after rejections was crucial in this case. The Commissioner's approval was obtained after initial rejections, allowing the respondent to clear goods for conversion to rolled products, meeting the requirements of Rule 16B.

5. The issue of clearance of goods during the pendency of the permission decision was addressed. The appellant had filed an application for permission, and despite the delay in the Commissioner's response, the goods were cleared during this period. The subsequent grant of permission validated these clearances.

6. The Revenue objected to the availability of permission during the relevant period. However, the Tribunal rejected this objection, emphasizing that the permission was granted by the Commissioner within the necessary timeframe, rendering the Revenue's objection unsustainable and leading to the dismissal of all appeals filed by the Revenue.