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2015 (6) TMI 112 - CESTAT MUMBAI

2015 (6) TMI 112 - CESTAT MUMBAI - 2015 (330) E.L.T. 791 (Tri. - Mumbai) - Rejection of request for permission under Rule 4(4) of Central Excise Rules, 2002 to store excisable goods out side the factory premises without payment of duty - Held that:- It would be seen from the Rule 4 that Commissioner is empowered in exceptional circumstances having regard to nature of the goods and shortage of storage space at the premises of the manufacturer where the goods are made, permit a manufacturer to sto .....

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e proposed place but after payment of duty on provisional or final assessment basis.

What appellant is trying out seek is to allow clearance of the goods without payment of duty outside the factory i.e. to warehouse and clearance from there. Admittedly goods are not notified under warehousing provisions, thus what appellant is trying to seek is benefit of warehouse provision in respect of goods which are not notified. It may be noted that in customs there is provision wherein importe .....

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issioner (AR) ORDER Per: P K Jain: Brief facts of the case are that the appellant is having manufacturing unit located in Pune. Appellant vide letter dated 12/7/2013 and 11/8/2014 requested for permission under Rule 4(4) of Central Excise Rules, 2002 to store excisable goods out side the factory premises without payment of duty. The Commissioner after considering various submissions rejected the request of the appellant. It appears that appellant made similar request for their Ahmadnagar units. .....

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ventory and therefore require more space for storing the final goods. In view of this position they have requested the Commissioner to permit them storing goods for the period of two years out side the factory premises without payment of duty. Ld. Counsel placed reliance on this Tribunal decision in the case of Anutone Accoustics Ltd. Vs. Commissioner of C.Ex., Bangalore-I [2010 (250) E.L.T. 590 (Tri.-Bang.)] . 3. Learned A.R., on the other hand submitted that the Commissioner in his order dated .....

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ture. Shortage of space for continuous period can not considered as situation of exceptional nature. It is clear from the submissions that appellant is free to clear his goods on payment of duty either on provisional assessment or final assessment basis and keep in the same place. It is not unusual for the manufacturer to have depot outside the factory where they store duty paid good and sale the same from there. Even in appellant's case, the said place is used to keep duty paid goods as reg .....

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e goods and shortage of storage space at the premises of the manufacturer where the goods are made, permit a manufacturer to store his goods in any other place outside such premises, without payment of duty subject to such conditions as he may specify. It would be seen from the said Rule 4 that Commissioner is empowered in exceptional circumstances having regard to nature of the goods and shortage of storage space at the premises of the manufacturer where the goods are made, permit a manufacture .....

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Your request has been duly reconsidered by the undersigned. In this regard, it may be informed to you that permissions under the Central Excise Rules are given by the Proper Officer under certain rules, to tide over certain difficulties with regard to the nature of the goods manufactured and cleared by a manufacturer. Sub-rule (4) of Rule 4 of the said Rules provides that the Commissioner may, in exceptional circumstances, having regard to the nature of the goods and shortage of storage space a .....

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xcise Rules, 2002 (CER) covers situations where shortage of space is caused under exceptional circumstances which are unforeseen. This implies that the circumstances are of temporary nature and these circumstances compel a manufacturer to store, non-duty paid goods outside the factory premises. However, the circumstances under which you are seeking permission are normal business circumstances and difficulties faced can be overcome by storing goods in the proposed storage premises after paying du .....

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ces narrated are not of a temporary nature, implying once the permission is given, the same could continue on a regular inasmuch as the application does not mention the time period for which the permission is sought. This vital ingredient was missing in the request application dated 12.07.2014. On pointing out to you, in the application dated 11.08.2014 you have brought in the time period for which the permission is sought as; for a temporary period till reconstruction of Plant-I at the earliest .....

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o be shifted to the area which is presently used for storing finished goods. Effectively, the restructuring will not in any way affect the area where the finished goods are stored. (2) The assessee can create additional space by re-organizing the racks on which the finished goods are stored presently for storing the goods, in case of exigency and to meet the requirements that arose due to the estimated growth. (3) Further, the company also have a piece of vacant land admeasuring 672 sq. meters ( .....

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e factory, for all times to come in the future, (on a day to day basis) and such cases are not within the ambit of Rule 4(4) of the Central Excise Rules, 2002. The application dated 12.07.2013 and 11.08.2014, do not make it clear as to what is quantum of excisable goods that would be cleared without payment of duty for storage purpose. On these vital technical counts also the permission sought for cannot be considered. 10. It is further noticed that you have moved a similar application for permi .....

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on't find anything wrong in the above reasoning. Permission sought is for very long or endless period. When space is available near the BSR there is no reason not to construct the storage place there itself. Exception circumstances undoubtedly would imply temporary and brief period. It is also to be noted that even now appellant can store the goods in the proposed place but after payment of duty on provisional or final assessment basis. Appellant has quoted this Tribunal's judgment in th .....

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