1991 (7) TMI 180 - AT - Central Excise

Summary

Issues:
Violation of Rule 51A - Entry of duty-paid goods into the factory premises without permission.

Analysis:
The appeal challenged the order penalizing the appellants for bringing in duty-paid goods from another unit. The Advocate for the appellants argued that the goods brought into the factory were different from those manufactured there, emphasizing that various duty-paid goods are commonly brought in as inputs or for use without objection from Central Excise authorities. The Advocate contended that Rule 51A should be interpreted realistically to facilitate legitimate business activities. Rule 51A prohibits duty-paid goods from entering factory premises without permission, but the Advocate argued that a strict interpretation would hinder factory operations. The Judge noted that Chapter V governs manufactured goods other than salt, detailing rules on declarations, storage, clearance, gate passes, and returns. The Judge reasoned that Rule 51A's restriction applies to goods manufactured by the specific entity and cleared after payment of duty. Thus, the Judge concluded that the rule does not prohibit the entry of goods different from those manufactured in the factory. Consequently, the lower appellate authority's decision was overturned, and the appeal was allowed.