9911796707
TMI Blog1981 (6) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... ng concerned in different contraventions of the Central Excise Act and Rules. In the appeal it has been pleaded that the appellants were engaged solely in the export of their manufactured garments and during the period 197172 to 197475 they had exported nearly ₹ 4 crores of readymade garments. As their business was expanding and their B.S.R. was not having sufficient space they had built-up a separate B.S.R. in the adjoining premises and had moved the Central Excise authorities for approval. They pointed out that the fact that they were using the new B.S.R. was known to the Central Excise officials who have been visiting their premises and in any case approval for the new store room was also given by the Central Excise Department thou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... increasing their production they had arranged for increased storage area of the B.S R. and the new store room was reported to the Central Excise authorities in their application dated 27-5-1974 for their approval. However, the approval was received only in May, 1975. In between some of the goods lying in their store had been seized on the ground of storage in an unapproved premises in spite of their application dated 27-51974 and also in the face of verification of their goods in that store room by different Central Excise officers prior to the seizure. There was no justification for the allegation that they had stored the products in an unapproved store-room. In this connection they cited the Supreme Court Judgment in the case of M/s. Hind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. They also pointed out that the Collector s finding in respect of the value of their clearance for inter sale being in excess of ₹ 5 lakhs was not maintainable as he has included approximately ₹ 30 thousand for jackets as dutiable when these were covered by an exemption. Similarly, the value of goods given in the shape of a discount by allowing one piece free on every five pieces purchased was also not correct and that would account for more than ₹ 20,000/. Adding these two figures the total value of their sales would come down to less than ₹ 5 lakhs. In addition the Collector has not given them full allowance for the cost of sale. They, therefore, pleaded that if proper allowance is made on account of these facto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery one who purchased at least five pieces making such person entitled to get one extra piece without paying any extra price. This is in the nature of qty. discount and is clearly admissible under Section 4 of the Central Excise Act as it stood then. 7. It is also quite obvious that for working out the dutiable value of the goods sold in the two sales due allowance has to be given for the cost incurred in organising the two sales. In any case once proper allowance is given for value of the jackets which are not dutiable and the value of pieces given away free, the total sale proceeds in any case comes within the exempted value of ₹ 5 lakhs. It is therefore, evident that the appellants were not within the dutiable category as they h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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