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TMI Blog1987 (1) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... 30 kg of nylon yarn have shown as balance in the RG-1 Register was not actually available. Further 28 kg nylon yarn was found with the respondents and the same had not been entered in the Central Excise Record nor classification list had been got approved in regard thereto. The respondents pleaded before the adjudicating authority that 130 kg nylon yarn had been stolen from their factory on 6-2-81 and that the 28 kg nylon yarn, seized was still in the Spinning Section of their factory and was not ripe for its accountal in RG-1 Register and that there was no need of classification list to be approved before the manufacture of the goods and the same was required to be approved before the clearance thereof, the Assistant Collector raised deman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the Department and it has not been denied that Police report had been filed regarding the theft. On a query from the Bench he stated that he was not aware of the follow-up action taken in their report of theft nor he had any knowledge as to whether any recovery of the stolen property had been made. In regard to 28 kg of nylon yarn, he pleaded that yarn was on the cones and it was not yet ready for being accounted for. He pleaded that Central Excise Rule 173B for filing of the classification list, does not enjoin upon the respondents to file the classification list before manufacture of the goods. The Rule, according to him, does not say that the classification list should be filed in respect of goods which are intended to be cleared a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ost or destroyed by natural causes or by unavoidable accidents during handling or storage that the duty is not required to be paid in respect of such goods. Here, we find goods have been stolen and it cannot be held that the stolen goods, as pleaded by the learned Advocate for the respondents, should be taken to have been lost. It may be mentioned that only when the goods have been lost or destroyed by natural causes that non-payment is envisaged under the rule. Stealing cannot be equated with the goods lost due to natural causes. Stealing is not an act of nature. It may be that it is in the nature of a thief to steal but the act of stealing does not become a natural cause. Now corresponding to Rule 49, there is a corresponding provision un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w for storing the goods without payment of duty till the point of clearance and a bond is taken from the manufacturer under Rule 48 to the effect that the licensee shall produce all the goods stored in his premises without payment of duty and that no excisable goods will be removed from premises without payment of proper duty except as provided for in the Rules and he is required to account for goods satisfactorily. All these provisions point to the fact that the liability to pay duty in respect of goods which are allowed to be stored without payment of duty rests on the licensee who manufacture the goods. In the Scheme of Central Excise Law there is no provision where any remission of duty is provided for in respect of goods which have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing entered into the RG-1 Register records as doubling in respect of the same was required to be done. The learned SDR has not also stated how the yarn was ready for entry in the RG-1 Register. The only charge therefore that remains is that this 28 kg yarn could be confiscated for the reason that the classification list in respect of the same had not been filed. I observe that the relevant rule for filing of classification list is Rule No.173-B. Rule 173B(1) reads as under:- Assessee to file list of goods for approval of the proper officer -(1) Every assessee shall file with the proper officer for approval a list in such form as the Collector may direct, (in quintuplicate), showing- (a) the full description of (i) all excisable goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods which are not mentioned in the earlier classification list filed, he is required to file - a fresh classification list or amendment thereto. Thus, it could be seen that a fresh classification could be filed as and when the manufacture of a new product commences. Thus the classification list can be filed after the commencement of the manufacturing process. In the Scheme of Central Excise, a licensee is required to apply for a Central Excise licence in respect of commodities he manufactures and for the purpose of clearance of the goods, the classification list and price list are required to be filed for quantification of the duty required to be paid. From, this, it can be said that so far as the filing of the classification list is con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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