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2016 (3) TMI 779 - CESTAT AHMEDABAD

2016 (3) TMI 779 - CESTAT AHMEDABAD - TMI - Remission of Central Excise duty - Held that:- We find that the Dept. had written to the appellant on 19.12.2005 to furnish certain particulars. The appellant had not replied to the same till 13.1.2006 when they requested the permission to remove goods from the Bonded Store Room for destruction. It is observed that the goods have already been destroyed by the appellant on 11.1.2006 ie., before the said letter. It is also observed that in their letter d .....

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od. In the case of BIOPAC INDIA CORPN LTD vs CCE, Vapi (2007 (11) TMI 213 - CESTAT AHMEDABAD ) the issue was finished and semi finished goods destroyed in fire. The other relied upon case law by the appellants is the decision of the Hon'ble High Court of Madhya Pradesh in the case of Godrej Food Ltd vs Union of India [1994 (4) TMI 84 - HIGH COURT OF MADHYA PRADESH AT INDORE ]. In the said case, assessee had furnished information sought by the Dept on the next day and thereafter on not receiving .....

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hri A B Nawal, Chartered Accountant For the Respondent : Shri J Nair, Authorised Representative ORDER PER : MR. P.M.SALEEM Connected issue involved in these two appeals and therefore both the appeals are taken up together for disposal. 2. In Appeal No: E/628/2008 the appellant M/s Sun Pharmaceuticals Industries Ltd, Vapi, are before us aggrieved by the order of the Commissioner of Customs and Central Excise, Daman, vide the impugned order dated 26.03.2008 rejecting their application for remissio .....

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not given the permission for destroying the goods within the said time limit, and that the goods were clearly beyond the expiry date. They had destroyed the goods on 11th Jan. 2006 in the presence of the Asstt. Commissioner, Food & Drugs Control , Admn. He, therefore, argues that there is no impropriety on illegality on their part. He also submits he had informed the dept vide his letter dtd 13th Dec. that they are going to destroy the said goods between 5th Jan. to 15th Jan. He also relied .....

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IO which is reproduced below: c) The procedure for destruction of goods and remission of Central Excise duty involved therein has been prescribed under Rule 21 of Central Excise Rules, 2002 and Chapter 18 of CBEC Central Excise Manual. According to para 1.4 (i) of the said Chapter 18 -a manufacturer desiring to destroy and seek remission of duty in respect of the excisable goods manufactured in his factory in terms of Rule 21 on the ground that the said goods have been rendered unfit for consump .....

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the Table in part 1.2 above. The date and time for destruction should be fixed by mutual convenience of the proper officer and the assessee and it should be ensured that the same date and time are not fixed for more that one assessee. It should also be ensured that there is no inordinate delay once permission for destruction and remission is granted. d) The assessee was aware of the procedures as laid down under Part I of Chapter 18 of the CBEC Excise Manual in respect of Remission of Duty and .....

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roper order for the same from the competent authority i.e. Commissioner in terms of Rule 21 of the Central Excise Rules, 2002. Not even the assessee informed their Range office about the date & time of destruction and destroyed the goods in absence of any supervising officer from the Department. Therefore, it was observed that the assessee had destroyed their finished goods valued at ₹ 1,34,59,048/- deliberately without following the proper procedure as laid down in Chapter 18 of CBEC .....

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finished goods and thereby, they rendered their Remission Application liable for rejection. The Ld Authorised Representative further submitted that the Range Officer had requested the appellant vide his letter dtd 19.12.2005 to submit the inventory details of RG1 Register. He submits that the appellant instead of giving reply to the same destroyed the goods on 11th Jan, 2006 on their own without intimating the department the exact date and time of destruction of the goods. He further submits tha .....

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of Jan. 13, the goods have already been destroyed and the action of the appellant in seeking permission to remove the goods from BSR for destruction is misleading and malafide. Destruction of goods before the permission was granted for removing the goods from Bonded Store Room is illegal and therefore action of the Adjudicating Authority not granting remission of duty is legal, correct and sustainable. He also submits that the CBEC manual does not empower the applicant to destroy the goods on hi .....

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at the Adjudicating Authority has held in the impugned Order in Original as follows: 8. In view of the above provisions, I find that it has been prescribed that the assessee should apply to the Range office for destruction indicating complete details of the goods and reason for destruction alongwith the proof that the goods have become unfit for consumption or for marketing such as report of chemical test or any other test conducted by a Government recognized laboratory. Destruction should be co .....

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hat the goods are unfit for marketing or unfit for consumption. I find that in case goods become unfit for consumption or for marketing, report of chemical test or any other test conducted by a Government recognized laboratory must be produced. Even subsequently also, the assessee were not bothered to supply the said supporting documents to the Department. 10. I also find that in the defence reply, the assessee have himself admitted the non following of the laid down procedure for destruction of .....

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e destruction has already been completed on 11.01.2006 In this regard, first the party s so hurriedness is beyond my understanding specially when most of the medicines under proposal for destruction have already been time expired long back like in the years 2001/2002/2003. Secondly the assessee after reportedly destroying the goods on 11.01.2006, seeks permission to remove goods from their BSR on 13.01.2006. I further find that the noticee did not put forth any argument or did not supply any sup .....

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y conducted destruction. However, it is seen that the assessee did not forward the detailed list of goods to be destroyed, as required by R.O. vide letter dated 19.12.2005. Further no proof towards their claim that goods are unfit for consumption or for marketing as required under para 1.4 (i) of CBEC S Central Excise annual were submitted. When these details were sought, instead of submitting these details to the Department, the assessee chose to destroy the goods first and then make a correspo .....

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