TMI Blog2012 (7) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... ated by business exigencies are no ground for denial of legally available facility - The storage of inputs outside the factory premises, prior to being brought to the factory, is specifically recognized by the aforesaid Circulars of the Board and the Commissioner as acceptable to allow for Cenvat credit- the impugned order is set aside and the case is remanded to Ld. Commissioner to decide the case afresh. - Excise Appeal No.805/2011 - - - Dated:- 12-4-2012 - SRI S.K. GAULE, DR.D.M. MISRA, JJ. FOR APPELLANTS: Sri B.N. Chattopadhyay, Consultant FOR THE RESPONDENTS: Sri S.Misra, Addl. Commr. (A.R.) Per SRI S.K. GAULE Heard both sides. 2. The appellant filed this appeal against the order in original No. 12/Commr./Bol/11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs has to be maintained at the godown as well as factory. (ii) Inputs from outside storage place should move under serially numbered challan showing quantity of goods, description of goods, weight/net weight etc. of the goods. (iii) An intimation in D-3 Form is required to be submitted within 24 hours of receipt of each consignment in the factory. (iv) A monthly stock statement should be submitted to the jurisdictional Range Office and; (v) CENVAT Credit should be taken only when entire inputs covered by an invoice are received in the factory. The officers found out that the inputs were stored in the said storage place and Cenvat credit was taken on those inputs without following the aforesaid condition and at the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anner other than the prescribed manner. The contention is that there is no allegation regarding suppression, mis-declaration or mis-statement against them. There was no attempt to remove the goods from their factory and the contention is that it is not in dispute that the inputs are duty paid. The contention is that Board vide circular No. 206/40/96 CX., dated 1/5/96 clarified that where the manufacturer cannot store inputs inside the factory premises on account of storage space is hazardous nature of inputs etc., they can seek permission for storage of modvatable goods outside the factory premises from the jurisdictional Commissioner of Central Excise and the said permission can be granted as an extention to the factory premises. The conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stoms, Daman-2009 (241) ELT 240 (Tri.-Ahmd.). 5. The contention of the Ld. A.R. appearing for the Department reiterated the findings of the Ld. Commissioner. 6. We have perused the records and considered the submissions that they have not fulfilled the conditions of the permission granted to them by the Department. The case is built on the premise that the appellant were taking credit on the inputs prior to bringing them inside the factory. Undisputedly, the appellant were availing Cenvat credit of SAD on the imported inputs. They were weighing the inputs on the weigh bridge situated in the factory and they were storing the inputs outside the factory premises. They were not having any separate space for storing the inputs. Undispute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory premises is no ground for denying Modvat credit. In their submissions before the lower authorities and in the present appeals they have submitted that the purchase and utilization of the inputs was entirely in accordance with Modvat rules inasmuch as the inputs were purchased under invoices of manufacturers and taking of credit was within the prescribed time limit of six months. They have also submitted that the credit on inputs is not to be denied on technical grounds. Specific reliance has also been placed on the decisions of this Tribunal in the case of Andhra Electro Galvanising v. CCE, 1995 (80) E.L.T. 322 (T) = 1995 (60) ECR 167; CCE v. Tamil Nadu Petro Products, 1996 (84) E.L.T. 263 (T) = 1996 (64) ECR 424 (T); CCE v. Mysore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Board and the Commissioner. Not taking into consideration the Tribunal s decision in the case of Mangalam Enterprise (supra), the Board s Circular and various other case law cited, amount to denial of principle of natural justice. In these circumstances, the impugned order is set aside and the case is remanded to Ld. Commissioner to decide the case afresh while taking into consideration the case laws cited during the course of hearing before him and while keeping in view the Board Circular and various other case laws cited. All issues are kept open. Both sides are at liberty to submit documents in their support. Ld. Consultant appearing for the appellant submitted that the goods are under seizure and their manufacturing activit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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