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2015 (11) TMI 900 - CESTAT MUMBAI

2015 (11) TMI 900 - CESTAT MUMBAI - TMI - Extension of the permission for storing the finished goods outside the factory premises as per the provisions of Rule 4(4) of Central Excise Rules, 2002 - whether the learned Commissioner was correct in rejecting the request for extension of permission to store the goods outside the factory premises - Held that:- if both the field formations i.e. Range Superintendent as well as Jurisdictional Division Office recommend the case of the appellant as has bee .....

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s Ltd. (2011 (11) TMI 555 - CESTAT NEW DELHI) this Tribunal was considering the provisions of Rule 4(4) of the Central Excise Rules, 2002.

The permission under sub-rule cannot be refused just because an assessee has been enjoying the same continuously for certain number of years. - the Revenue’s plea that there is deferment of collection of duty in cases of outside storage of the goods under Rule 4(4) without payment of duty, is not correct. - letter dated 26.12.2014 issued from the o .....

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d both sides and perused the records. 3. Learned A.R. has raised preliminary objection against the maintainability of this appeal. It is his submission that the letter of the Asst. Commissioner dated 26.12.2014 indicating the decision of the Commissioner is not an appealable order. 4. Learned Counsel brings to my notice that the Hon ble High Court of Bombay, Nagpur Bench, in their oral order dated 23.01.2015, has rejected the petition of the assessee on the ground that there is an alternative re .....

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tion recording that there is an alternative remedy available to the petitioner. 6. In view of such clear-cut findings, I find that the appeal needs to be heard and disposed of on merits and I proceed to do so. 7. Relevant facts that arise for consideration are that the appellant here-in had sought permission from the Commissioner to store the finished goods manufactured by them outside the factory premises without payment of duty on the ground of shortage of space. Such permission was granted to .....

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appellant sought extension by letter dated 10.12.2014, Superintendent of Central Excise, Range Akola visited the premises of the appellant and had recommended that the request for extension of permission is genuine and may be considered. It is his submission that the said request was considered by the Jurisdictional Asst. Commissioner who in turn had informed the office of the Commissioner of Central Excise, Wardha. He would submit that when the appellant was granted permission to store the goo .....

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. CCE Bangalore - 2010 (250) ELT 590 (Tri. Bang) and in the case Balkrishna Industries Ltd. vs. CCE - 2013 (297) ELT 257 (Tri. Del.) and the Tribunal held that request for extension of permission cannot be rejected on the ground that exceptional circumstances cannot be perpetual. He would submit that the appellant s case is exceptional one and inasmuch as the goods are stored outside factory are for export purposes and export orders cannot be processed immediately on receipt of the same. Hence t .....

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es and cannot be a routine matter. He would submit that the appellant had sought extension for storing the goods outside the factory premises atleast once before this permission was rejected. 10. I have considered the submissions made by both the sides and perused the records. 11. The only issue in this case is whether the learned Commissioner was correct in rejecting the request for extension of permission to store the goods outside the factory premises. On perusal of the records, it is noticed .....

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as the request seems to be genuine and the appellant had fulfilled all the conditions as laid down by the CCE Nagpur in letter No. IV(10)30-29/2011/TECH/9075 dated 25.06.2014. The said recommendation letter of the Supdt. of Central Excise, Akola was considered by the Jurisdictional Asst. Commissioner and he also recommended for the extension of permission to store the goods without payment of duty outside the factory premises. 12. In my considered view, if both the field formations i.e. Range Su .....

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s raised by the learned Counsel that in an identical set of facts in the case of Balkrishna Industries Ltd. (supra) this Tribunal was considering the provisions of Rule 4(4) of the Central Excise Rules, 2002 and held as under:- 5. I have carefully considered the submissions from both the sides and perused the records. The goods produced and manufactured in a factory can be kept within the factory without payment of duty, as in terms of the provisions of Rule 4(1) of Central Excise Rules, 2002, t .....

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age of storage at the premises of the manufacture where the goods are made, permit a manufacturer to store his goods at any other place outside the factory premises without payment of duty, subject to such conditions as he may specify. In this regard, sub-rule (4) is reproduced below :- Rule 4(4). - Notwithstanding anything contained in sub-rule (1), Commissioner may, in exceptional circumstance having regard to the nature of the goods and shortage of storage space at the premises of the manufac .....

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being of hazardous nature or there is seasonal production of such volume, which cannot be stored in the factory or due to some commitment for sale, domestic or for export, which have to be made during some period, huge quantity has to be manufactured and stored so that the assessee is able to supply the goods as soon as the orders are received. The Commissioners interpretation of sub-rule 4(4) that the exceptional circumstances cannot continue in perpetuity is not correct, as he has read this .....

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he appellant have no option but to store the goods outside the factory premises, the permission for outside storage has to be granted subject to the conditions as are necessary for safeguarding the interest of the Revenue. The permission under sub-rule cannot be refused just because an assessee has been enjoying the same continuously for certain number of years. 6.The Revenues plea is that such outside storage facility under sub-rule (4) of Rule 4 continuously for several years amounts to enjoy .....

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