9911796707
TMI Blog2015 (11) TMI 900X X X X Extracts X X X X X X X X Extracts X X X X ..... s not granted extension of permission to store the goods without payment of duty, is a very casually worded and does not given any reason for rejection of the request. I find strong force in the contentions raised by the learned Counsel that in an identical set of facts in the case of Balkrishna Industries Ltd. (2011 (11) TMI 555 - CESTAT NEW DELHI) this Tribunal was considering the provisions of Rule 4(4) of the Central Excise Rules, 2002. The permission under sub-rule cannot be refused just because an assessee has been enjoying the same continuously for certain number of years. - the Revenue’s plea that there is deferment of collection of duty in cases of outside storage of the goods under Rule 4(4) without payment of duty, is not cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner under Section 35(2) of the Central Excise Act, 1944 and rejected the Writ Petition recording that there is an alternative remedy available to the petitioner. 6. In view of such clear-cut findings, I find that the appeal needs to be heard and disposed of on merits and I proceed to do so. 7. Relevant facts that arise for consideration are that the appellant here-in had sought permission from the Commissioner to store the finished goods manufactured by them outside the factory premises without payment of duty on the ground of shortage of space. Such permission was granted to the appellant and was renewed regularly. By a letter dated 10.12.2014, the appellant again sought extension/renewal of permission to store the goods w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l held that request for extension of permission cannot be rejected on the ground that exceptional circumstances cannot be perpetual. He would submit that the appellant s case is exceptional one and inasmuch as the goods are stored outside factory are for export purposes and export orders cannot be processed immediately on receipt of the same. Hence the appellant produces the goods in anticipation of export orders and due to shortage of space the request for storage outside the premises is met. 9. Learned A.R. on the other hand, would draw my attention to the provisions of Rule 4(4) of the Central Excise Rules, 2002. It is his submission that the said permission as per provisions of Rule 4(4) are to be given having regard to the nature o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of duty outside the factory premises. 12. In my considered view, if both the field formations i.e. Range Superintendent as well as Jurisdictional Division Office recommend the case of the appellant as has been genuine one, it should have been considered in correct perspective by the office of the Commissioner of Central Excise. On perusal of the letter dated 26.12.2014 vide which the Commissioner has not granted extension of permission to store the goods without payment of duty, is a very casually worded and does not given any reason for rejection of the request. I find strong force in the contentions raised by the learned Counsel that in an identical set of facts in the case of Balkrishna Industries Ltd. (supra) this Tribunal was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of duty subject to such conditions as he may specify. Thus the words exceptional circumstances cannot be read in isolation but have to be read with the expression having regard to the nature of the goods and shortage of storage space at the premises of manufacturer where the goods are made. The examples of such exceptional circumstances can be the goods manufactured being of hazardous nature or there is seasonal production of such volume, which cannot be stored in the factory or due to some commitment for sale, domestic or for export, which have to be made during some period, huge quantity has to be manufactured and stored so that the assessee is able to supply the goods as soon as the orders are received. The Commissioners inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tinue beyond reasonable period. In view of this, at the adjudication stage, the Commissioner cannot travel beyond the show cause notice and invoke Rule 20 of the Central Excise Rules, 2002, for denying the permission. Moreover outside storage under Rule 4(4) under the circumstance of exceptional nature having regard to the nature of the goods and shortage of storage space in the factory, is different from the warehousing facility under Rule 20. The outside storage place under sub-rule (4) of Rule 4, as clarified in the Boards Circular dated 1-5-1996, is an extension of the factory premises while the bonded warehousing under Rule 20 is not an extension of factory premises and for that purpose, separate registration has to be obtained. The R ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
