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TMI Blog2000 (11) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... kept outside the bonded store room. Shri R.K. Agarwal, Sales Manager of the appellant's firm submitted that the appellants are clearing yarn not only in single yarn form but also in double yarn form. He further deposed that the yarn found in a place outside the BSR was meant for doubling. He also stated that they had not sufficient space to store the yarn and because of the paucity of the space, they are supposed to stock the yarn, outside the bonded store room. He submitted that the yarn is being recorded in the R.G. 1 Register only at the time of this clearance. Shri Agarwal in his statement further stated that the yarn kept outside the BSR was not in ready marketable stage in-as-much as some of it was still in plastic cones. In reply to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich it was clarified that yarn is to be entered in the R.G.1. account as soon as it has attained the form in which it is to be cleared from the factory. He submits that when this clarification is read in conjuction with the statement of the Sales Officer of the Company and the submissions in reply to the SCN it will be clear that yarn in dispute was to be doubled before clearance and since the yarn found was in single form it did not require to be entered in R.G.1. Register in terms of this clarification given in the Trade Notice. Ld. Counsel, therefore, submitted that there was no case either for confiscation of the yarn or for imposition of penalty and therefore, prayed that the appeal may be allowed. 4. Shri S.C. Pushkaran, ld. DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of penalty the fact remains that the yarn was not entered into the statutory record. Needless to say that the duty on yarn is required to be paid on signle ply yarn form. Even if the yarn was not in completely marketable condition, it should have been recorded in one of the columns meant for semi-finished goods in R.G.1. register since it is not there, therefore, penalty was warranted and is sustainable in law. In so far as the quantum of penalty is concerned, I find that it is nominal in view of the fact that the value of the goods is quite substantial, therefore, I would not like to interfere with the imposition and quantum of penalty. 8. The impugned order is, therefore, modified to the extent stated above and the appeal is dispo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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