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TMI Blog2002 (3) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... 1944. 2. The short facts are that the appellants are registered under Central Excise Act and Rules and are engaged in the manufacture of Iron and Steel products falling under Chapter 72 of the Schedule to the Central Excise Tariff Act, 1985. The manufacture of the said final products were out of the imported and domestically procured M.S. scraps, Ingots and other re-rollable materials. 3. On the basis of the information and intelligence collected by the Department that the appellants were indulging in receipt and storage of raw materials required for manufacture of final product without making necessary entries in the statutory records, the unit was visited by the Department officers on 2-12-95 and found 4000 M.Ts. of M.S. scraps lying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on them under Rules 173Q and 210 of Rule ibid. 4. The appellants did not contest the seizure of the goods but explained that the goods were imported by the sister concern and due to cyclonic storm the same could not be transported to that factory i.e. M/s. Steel Mould s Factories and M/s. Jai Bhavani Enterprises which were located at a distance of 50 Kms. from the Chennai Port. Therefore, a part of the consignment of 12,000 M.Ts. had been unloaded in the appellants premises. It was contended that it is a simple case of a consignment received by the sister concern and partly stored in the appellants premises and after clearance from the port, on account of cyclonic condition prevailing on that day. The sister concern had subsequently util ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are said to have been brought out, therefore the Commissioner proceeded on that line. He submitted that unless all the facts leading to confiscation of goods are brought out, there cannot be an order for confiscation and penalty cannot be imposed. On a specific query as to whether the appellants can store the goods without documentation, the ld. Counsel explained the reasons as to why the sister concerns are compelled to retain a part of the consignment in the assessees place. He forcefully submitted that there was no violation and there was no intention to evade duty by the sister concern and that they had utilised the same in the manufacture of their final product and had submitted the end-use certificate to the Customs Department and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no violation of the rules in the case. He also pointed out that the imported goods are not liable for confiscation. The simple question before the bench is as to whether the appellants can bring into the licensed premises any raw materials and retain it in their premises or in the bonded warehouse without accountal and documentation. It is an admitted fact when these goods have been retained by the appellants in their premises. There is no explanation as to why the lorry which can come up to the appellants place could not go to the sister concern s factory. It is not the appellant s case that the roads were non-motorable and that the roads were flooded with water and hence they were compelled to unload it in the appellants premis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r premises duty paid goods and had not accounted the same nor had taken permission from the department. This is an admitted fact. Therefore, non-mentioning of Rule 51A is not fatal to the proceedings. Further Rules 173G and 173Q have been indicated which details with the procedure to be followed by the assessee in maintenance of Registers on receipt of excisable goods. As the violation is explicit and clear and no satisfactory explanation is available on record, therefore the action initiated by the department cannot be questioned. The terms of the show cause notice have been made clear to the appellants about their unloading in their premises the duty paid scrap material in their factory without documents and without obtaianing permission ..... X X X X Extracts X X X X X X X X Extracts X X X X
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