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2015 (11) TMI 672 - AT - Central ExcisePermission for warehousing of goods - Rule 4(4) - Rejection of the application for storage of finished goods outside the factory premise in terms of Rule 4(4) of Central Excise Rules, 2002 - whether the Commissioner is right in rejecting the application for extension of permission for storage of final product outside the factory premises without payment of excise duty or otherwise - Held that:- If the height of stacking of boxes is increased, it is obvious that due to heavy weight, the boxes as well as the goods packed therein will get broken and dmaged. Therefore the nature of the goods in the present case is such that it can not be stored above a limited height of the space. It is very important to note that in the above rule as regard nature of the goods, it is not specified what should be nature of the goods. Therefore the nature of the goods has to be seen on case to case basis. In the present case, in my view, since the nature of the goods is such that it can not be stored more than a particular quantity in the available space, this reason is sufficient to hold that the nature of goods in the present case is such that the same can not be stored more than a particular quantity of stock. - Expansion of factory is not every time possible due to various factors like availability of finance to buy the extra land and building, availability of land and building for purchase etc. particularly adjacent to existing factory premises. Therefore the decision of expansion of the factory is the sole discretion of the assessee and department can not insist for that. For consideration of the Assessee’s request for permission under Rule 4(4), the existing circumstances has to be seen. Appellant successfully demonstrated that over and above present quantity being stored, cannot create extra space for storage likewise there are more number of differences in the facts of the M/s. GKN Sinter Metals Pvt. Ltd case and facts of the present case therefore ratio of the M/s. GKN Sinter Metals Pvt. Ltd case is not applicable and therefore same is distinguished. Keeping in view the safeguard of Revenue, I observed that in the previous period when the Ld. Commissioner granted permission it was found that the applicant has never misused the facility of outside storage. No instances in leakage of Revenue as regard to the facility of storage of goods outside factory was reported, moreover the applellant is prepared to comply the condition specified by the Commissioner such as execution of security bond alongwith bank guarantee. Therefore there is no chance of danger to the Revenue, for this reason also appellant deserve extension of permission. - Decided in favour of assessee.
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