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TMI Blog2010 (5) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 4-3-2003 bearing No. C. No. Vin/48/160/2002 EOU-III against the respondents herein were sought to be dropped. The respondents are holders of Customs Licence bearing No. 18/97 engaged in the manufacture and export of the finished products namely, polished granite slabs of various sizes. The respondents had cleared 1335.454 Sq. Ft. of polished granite slabs for IUT to M/s. SVG Exports Pvt. Ltd. vide their Invoice No. 122/2002-03 dated 5-9-2002 and shipping bill No. 3925/2002 dated 5-9-2002, valued at Rs. 2,29,528/-. 3. A Show Cause Notice dated 4-3-2003 came to be issued to the respondents on the allegation of contravention of the provisions of Notification No. 53/97 dated 5-6-97 read with Section 72(1)(d) of the Customs Act, 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearing for the respondents relying upon the Mahazar report and drawing our attention to the order passed by the Tribunal in the matter of Madhav Marbels and Granites Ltd. v. Commissioner of C. Ex., Salem reported in 2009 (239) E.L.T. 120 (Tri. - Chennai) and in the respondent's own matter reported in 2001 (136) E.L.T. 998 (Commr. Appl.) submitted that considering the Mahazar report, it clearly disclose that the goods had arrived in the consignee's warehouse and were found totally damaged and therefore, taking into consideration of Rule 20(4) of the Central Excise Rules, 2002 read with Regulation 4 of the Warehoused Goods (Removal) Regulations 1963, the respondent cannot be saddled with duty liability in respect of the goods in question. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nother warehouse without payment of duty. Sub-rule (2) provides that such facility shall be available subject to such conditions, including penalty and interest, limitations, including limitation with respect to the period for which the goods may remain in the warehouse, and safeguards and procedure, including in the matters relating to dispatch, movement, receipt, accountal and disposal of such goods as may be specified by the Board. Sub-rule (3) provides that the responsibility for payment of duty on the goods that are removed from the factory of production to a warehouse or from one warehouse to another warehouse shall be upon the consignee. Sub-rule (4) states that if the goods dispatched for warehousing or re-warehousing are not receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the goods have to be re-warehoused then the consignor has to pay the duty in respect of such goods. In order to ensure the payment of such duty, the officer can insist for bond to be executed by the consignor before the goods are cleared for re-warehousing from the warehouse of the consignor. 12. In the case in hand, there is no dispute that the goods were to be re- warehoused in the warehouse of the consignee on clearing the goods from the warehouse of the consignor on execution of bond by the consignor. It is also a matter of record that the goods though were cleared from the warehouse of the consignor i.e. respondent for re-warehousing in the warehouse of the consignee, before they were received in the warehouse of the consignee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt cannot avail nor can be of any benefit to the consignor, more particularly in view of the provisions of law comprised under Rule 20 (4) of the Central Excise Rules, 2002 read with Regulation 4 of the Warehoused Goods (Removal) Regulations, 1963. 13. Neither the Deputy Commissioner nor the Commissioner (Appeals) appears to have considered these relevant aspects of the matter. 14. It was sought to be contended that on behalf of the respondents, the Regulation 4 of the Warehoused Goods (Removal) Regulations, 1963 merely requires arrival of the goods at a place of destination and considering the same and taking note of the facts disclosed from the Mahazar report, it cannot be said that the goods had not arrived at the warehouse o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that we are taking in the matter and the provisions of law as applicable to the facts of the case, we do not find it necessary to refer to the decision in the matter of Carrier Aircon Ltd. (supra). 17. For the reason cited above, the appeal succeeds and the orders passed by the Commissioner (Appeals) as well as the Deputy Commissioner are hereby quashed and set aside and the matter is remanded to the Deputy Commissioner to deal with the Show Cause Notice in accordance with law and bearing in mind the observations herein above and pass an appropriates order. Considering the fact that the matter relates to the year 2003, the adjudicating authority shall dispose off the matter expeditiously as fast as possible prior to 31st December 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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