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TMI Blog2012 (7) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... confiscated the goods valued at Rs.14,381.88 MT valued at Rs.30,38,82,231/- under Rule15 (1) of Cenvat Credit Rules. However, he allowed the goods to be redeemed on fine ofRs.8.00 crores under Section 34 of CEA, 1944. 3. Briefly stated facts of the case are that the appellant are engaged in the manufacture of Ferro Manganese, Silico Manganese, Ferro Chrome and Ferro Manganese Slag falling under Chapter Sub-heading No.72024100, 72021100, 72023000 and 26190090 respectively of the 1st Schedule to the Central Excise Tariff Act, 1985. The appellant availed Cenvat credit of SAD (4%) paid on imported inputs viz. Ferro Manganese, Silico Manganese, Ferro Chrome and Ferro Manganese Slag.A team of officers of Central Excise, headed by Assista ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s against the appellant and Ld. Commissioner upheld the proposal in the show cause notice and disallowed the cenvat credit of Rs.1,21,55,289/- and demand the same under Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11A(2) of the Central Excise Act, 1944. Aggrieved by the same, the appellant filed this appeal. 4. The contention of the appellant is that they were granted permission that they are engaged in the manufacture of Ferro Manganese, Silico Manganese, Ferro Chrome and Ferro Manganese Slag falling Ferro Manganese, Silico Manganese, Ferro Chrome and Ferro Manganese Slag and they generally keep a stock of Three to Six months which works out to 15000 to 30000 MT and for which they have not sufficient storage space. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Jurisdictional Assistant Commissioner. The appellant also contended that their 90% goods are exported and duly accounted for. Therefore for a mere technical breach, the substantial benefit cannot be denied. In these circumstances the cenvat credit cannot be disallowed and they cannot be visited by imposition of penalty nor the goods can be confiscated. In support of above contention, they have placed reliance on M/s. Mangalam Enterprises Vs. Commr. of Central Excise & Customs, Vadodara 2003 (159) ELT 393, M/s. Indigo Paints Pvt. Ltd. Vs. CCE., Jaipur-II (2007 (213) ELT 275 & Vikram Cement Vs. Commr. of C.E., Indore-2006 (194) E.L.T. 3 (S.C.). Ld. Commissioner has not considered the case law. The aforesaid decision are applicable to the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round that they have not fulfilled the condition of the permission granted to them on 21/5/07 and for not obtained the permission for the material period. However, there is no allegation against the appellant that goods had not suffered duty and it is not in dispute that the goods received have been duly accounted. There is no allegation of their utilization in any other manner than the manner prescribed. We agree with the contention of the appellant that Ld. Commissioner while adjudicating the case has not taken into consideration the decision of this Tribunal in the case of Mangalam Enterprises (supra) which in turn places reliance on Board s aforesaid Circular are reproduced below: 2. The issue involved in both the appeals is com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 and Trade Notice No. 27/96 dated 30-5-96 of the Mumbai Commissioner-1. The appellants have pointed out that these circulars specifically permitted storage of inputs outside the factory premises, upon seeking permission from the Commissioner. 3. It is clear from the records of the case that there is no dispute whatsoever about the receipt of the inputs in the factory and its utilization by the appellant in the manufacture of finished products. Similarly the aforesaid circulars of the Commissioner and Circular No. 206/40/96 CX., dated 1-5-96 issued by the Central Board of Excise and Customs permit storage of inputs outside the factory premises. The decision of the Tribunal in Thennax case also relates to storage of goods outside the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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