9911796707
TMI Blog1988 (4) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... 75 as amended by Notification No. 105/82, dated 28-2-1982. In terms of this Notification the appellants availed of the benefit in respect of certain inputs cleared for use in their other factory subject to the observance of Chapter X procedure. The respondents made an application to the Collector as required under Chapter X procedure and before the sanction could be accorded by the Collector the respondents cleared the goods without payment of duty for use in their other unit. The Collector's sanction in the matter was accorded after over six months and in the meantime the respondents cleared the goods in terms of the said Notification. The demand was therefore was raised in respect of clearances made during the period of November, 1982 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the fact that suitable arrangements exist for storage of the goods and that can give permission only after consideration of the supervisory arrangements required. He pleaded in the present case before the application could be granted the respondents availed of the benefit of the notification. In this connection he cited the case of M/s. Kamal Cold Storage (P) Ltd. v. Collector of Central Excise, Bombay, Order No. 130/1987-B1. Shri Ravinder Narain, the learned Advocate of the respondents pleaded that for the purpose of notification in terms of provisions of Chapter X all that the respondent was required to do was to file an application for availing of the benefit of the Notification and that there was no stipulation for taking out a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h provided all other excise formalities are complied with. in such cases, the technical breach of Rule 174, should be condoned as this situation is created because of failure of the part of the administrative machinery. Therefore, the manufacture and clearance of excisable goods by a new applicant/assessee who has made a proper application for a Central Excise licence on due payment of prescribed fee and observance of the prescribed procedure is permissible provided that (i) he can satisfy the Range Officer that any delay in manufacture/clearance of goods will adversely affect him and (ii) he has followed prescribed procedure in Rule 173CC (applicable to S.R.P. Commodities only). (2) In respect of commodities not falling under S.R.P., the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e given the permission but they fulfilled all the requirements of Chapter X for the grant of permission right from the time they applied for the same. 3. The short point that arises for our consideration is that in the absence of any permission on the application made by the respondents in terms of requirements of Chapter X procedure whether they could have availed of the benefit .of the Notifications referred to (supra). The revenue have cited the case of M/s. Kamal Cold Storage Order No. 130/1987-B 1. The facts in that case as required under the Notification 132/68, the appellants had not applied nor obtained a L-6 licence in terms of Chapter X, but had cleared the goods on payment of full.duty and later on claimed refund for the same. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t time in the discharge of their functions. In case there was going to be any delay in giving permission or there was any doubt as to the eligibility of the respondents to the benefit of the Notifications they could have been informed so and clearances could have been provisionally allowed as provided for under the law. The respondents as required under the law would have been also filing the necessary RT-12 returns etc. and made the authorities aware of their clearances but yet the departmental authorities did not raise any objection that pending the permission they had wrongly availed of the benefit of the Notification. In fact the Board have taken note of such possible delays in a different context as brought to our notice above and have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Chapter X. Now Chapter X as seen from Rule 192 deals with the remission of duty on excisable goods used for special industrial purposes. The special industrial process may be such where the utilisation of excisable goods exempted is in a unit which is not under excise control and it is primarily for this reason that the satisfaction of the Collector for utilisation of the goods in respect of which remission has been given is provided for and permission of the Collector after his satisfaction regarding the safeguard for the revenue etc. has been provided for. In a case where the benefit of exemption has been given and the utilisation of the goods is in a unit which already is under excise control the question of any special safeguards to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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