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TMI Blog1997 (11) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... bulbs. Such shells attracted nil rate of duty under Tariff Entry and the finished bulbs and tube lights were dutiable. On 24-2-1986 the appellants had requested the department to permit storage of duty paid finished goods in premises outside their factory. This permission was given on 9-4-1986. This permission and facility were used by the appellants to store the non-dutiable intermediate products glass shells and tubes outside the factory. On 29-2-1992 at the time of routine stock checking the departmental officer found that the physical stock was less than the book stock. Although the proceedings do not reflect this fact, it would appear that the assessees explanation that these goods were stored outside the BSR was accepted, since the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Learned Advocate made it clear that the present appeal pertains to the 3rd appeal bearing No. 6-CE/APPL/DLH/94, alone. 2. The main plea of the learned Advocate was that Rule 57C is qualified by Rule 57D which states that where intermediate product is not dutiable, but where the final products are dutiable, the credit of duty paid on inputs is available in clearing the final products. It is also her claim that the practice adopted by the assessee to store the non-dutiable products outside the factory premises was known to the department for the entire duration since these goods were transported to and fro under proper challans. It is also her case that the Collector should have passed an order on the aspect of the assessees having volunt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e department to allege that these goods had been cleared in contravention of the listed Rules. Where the department permits storage of goods before their final clearance outside the registered premises, such extra premises are deemed to be the the extension of the bonded storeroom and, therefore, the removal to such additional premises cannot be termed to be removal from the licensed premises. In this case even if the assessee had wrongly continued to utilise the permission given by the department for a limited period, in view of the continued knowledge of the department on this observation of the assessee the action of penalty on the assessee cannot sustain and will have to be set aside. 4. I find that both the lower authorities had conc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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