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2015 (11) TMI 41 - CESTAT MUMBAI

2015 (11) TMI 41 - CESTAT MUMBAI - TMI - Rejection of permission to remove the goods for further processing under Rule 16C of the Central Excise Rules, 2002 - respondent denied the permission on the grounds that the case of the appellant was not found a deserving case as is prescribed under the Board s Circular No.844/2/CX dated 31/01/2007 - violation of the prescribed procedure and conditions of Rule 16C as well as Rule 12AA - Held that:- Appellant has been granted the permission under Rule 16C .....

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der Rule 16C of the Rules. Revenue has also failed to prove that the appellant has committed any violation of the terms and conditions and procedure prescribed by the learned Commissioner while granting the permission. In view of these circumstances, we hold that denial of permission under Rule 16C is not legally sustainable. - Impugned order is set aside - Decided in favour of assessee. - APPEAL No.E/86029/15 - Dated:- 3-7-2015 - Mr. P.K. Jain, Member (Technical) And Mr. S.S. Garg, Member (Judi .....

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C of the Central Excise Rules, 2002 for financial year 2015-16. 2. The brief facts of the case are that M/s.Essar Steel India Ltd., the appellant is engaged in the manufacture of Hot rolled pickled and oiled coil/sheets, cold rolled coil/sheets, G.P Coil/sheets and CR CA/GP Color coated coil/sheets falling under Chapter heading No.72 of the First Schedule to the Central Excise Tariff Act, 1985. It has set up a 10 Million ton per annum facility at Hazira, Surat. It has set up a plant at Pune for .....

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activity. The appellant has further alleged that for the last several years, the appellant has been applying for permission under Rule 16C and the same has been granted to it on yearly basis from time to time. As a result of this permission, they have been clearing goods directly from the job workers premises by duly discharging duty from Pune factory on the value added prices. It has further alleged that on 03/02/2015 the appellant applied for renewal of only permission under Rule 16C for the f .....

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r the Boards Circular No.844/2/CX dated 31/01/2007. Secondly, the respondent in the impugned order has given a finding that the appellant has violated the prescribed procedure and conditions of Rule 16C as well as Rule 12AA of the Rules. Aggrieved by the impugned order, the appellant has filed this appeal before us. 4. The learned Counsel for the appellant submitted that Rule 16C provides that the jurisdictional Commissioner of the Central Excise may permit the manufacturer to remove the goods .....

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special order and subject to such conditions as may be specified by him permit a manufacturer to remove excisable goods manufactured in his factory, without payment of duty, for carrying out tests or any other process not amounting to manufacture to any other premises whether or not registered and after carrying out such tests or any such other process may allow a) bringing back such goods to the said factory without payment of duty for subsequent clearance for home consumption or export as the .....

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ioned in the said letter which includes maintenance of proper records of dispatch, receipt and inventory of goods. 5.1 The learned Counsel further submitted that the impugned order dated 31/03/2015 has failed to point out even a single instance, where the appellant has violated the procedure laid down in Rule 16C or Rule 12AA of the Rules. He also submitted that in case of any violation of Rule 16C or Rule 12AA, the department could have issued a show-cause notice to the appellant but the fact i .....

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e trade and manufacturer of goods. In support of his contention he placed reliance on the following decision, wherein it was held that the administrative discretion must be used judiciously and not arbitrarily: a) Bengal Rolling Mills Ltd., Vs. CEGAT 2004 (168) ELT 441 (Cal) b) Sharda Steel Rolling Mills Vs. CCE, Delhi 2008 (228) ELT 312 (Tri-Del) 5.3 He also submitted that by following the procedure under Rule 16C , the appellant has in fact paid more duty to the Pune Commissionerate. Had the p .....

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Rule granting permission to remove the goods without payment of excise duty is a special procedure and can only be granted in deserving cases. In this case, the learned Commissioner has not found the appellants case as deserving for extension of permission under Rule 16C for the year 2015-2016. On being specifically asked by the Bench as to whether the appellant has violated any of the conditions or procedure prescribed in Rule 16C during the past years or any prejudice caused to the Revenue, .....

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e checked in for the month of April, May and June 2015 by surprise visit by the Range Superintendent by making a visit to the factory at Pune once in every month. The Bench directed the AR to find out whether any violation was committed by the appellant during these three months period. The learned AR after getting feed back from the Pune Commissionerate submitted that during the grace period the department did not find any violation committed by the appellant. 8. We have considered the submissi .....

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