9911796707
TMI Blog2004 (5) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... Co Ltd. [ 1999 (3) TMI 76 - SC ORDER] , the alleged converted forms, in this case, are to be held as out of excise net. When goods allegedly manufactured have been kept in the BSR (the abbreviation for the term and place Bonded Store Room), in the licensed premises, where all manufactured goods are to be kept pending clearance on payment of duty, the non-accountal thereof in the production records, as prescribed viz. RG 1, would only be a technical/clerical omission and not a substantial violation to call for ordering the confiscation under the provision of the Central Excise Rules, 173Q(1), 210, 226. Since no intention of or evasion of duty could be established, as no attempt to remove the goods is established and concluded, following the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n could be conducted. The trials were completed using the 32 MTs of imported HDPE in the bagging plant and extruder section of the plant. (b) The officers on 2-8-1992 on a revisit, earlier having taken cognisance on 1-8-92 of the above-said trial activity detained the following goods : (i) Various grades/qualities of HDPE in 436 bags (approx. 6540 kgs) in mixed condition filled with HDPE granules, chips, flaks, and fines etc. (ii) Relene HDPE granules of a produce of Reliance (Reliance Petrochemicals Ltd., Hazira) packed in standard pack of 25 kgs. (iii) HDPE granules/chips mixed not sorted in 500 kgs bag in loose condition. (iv) HDPE waste in lump form in irregular shape. Out of these 635 kgs (15875 kgs) correlate to imported HDPE us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereof resulting in bagged HDPE, subsequent stages emergence from the trial, in flaks, granules, lump form cannot be considered, as to be covered by the concept of, manufacture following the Supreme Court's decision in the case of Union of India v. Ahmedabad Electricity Co. Ltd., 2003 (158) E.L.T. 3 (S.C.) Para 23 which reads as follows : "23 In the case in hand also coal which leads to production of cinder is not sued as a raw material for the end-product. It is being used for ancillary purpose that is a fuel. Therefore, irrespective of the fact whether any manufacture is involved in the production of cinder it should be held to be out of the tax net for the reason that it is not a raw material for the end-product." (Emphasis supplied) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y is attracted into the ambit of manufacture "by chapter notes in the Schedule to Central Excise Tariff Act, 1985 [see C.C. Excise, Patna v. Tata Iron & Steel Co. Ltd., 2004 (165) E.L.T. 386 (S.C.)]. (h) In the present case, the goods in the changed primary forms are admittedly mixed condition and the marketability thereof is not established. They are not the consequence of 'a deliberate skilful manipulation of the inputs or the raw materials' [see Modi Rubber Ltd., 1987 (29) E.L.T. 502]. Ld. DR relied by Supreme Court's decision in Ahmedabad Electric Co. Ltd. The converted form are neither marketable nor sale-ability thereof established & relying upon CCE v. India Tube Co Ltd., 1995 (77) E.L.T. 21 (S.C.) the alleged converted forms, in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Para 4 of Kirloskar Brothers' case) and not a case, as in this case, of a simplicitor non-accountal. The Andhra Pradesh High Court in the case of Southern Steels, 1979 (4) E.L.T. J402 have held that there was no warrant for rendering the goods to confiscation for the mere fact of non-accountal in production records viz. RG 1 when no preparation for illegal removal was not existing. In the present case not only there is no preparation of illegal removal but the goods are admittedly not even sorted out into granule/flaks/powder etc the alleged individual converted forms. Quantity being in 500 kgs, jumbo bags, normally used only as a storage container in factories and not in shipment packaging. The confiscation arrived at is therefore to be se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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