Supervision charges on outside excise-controlled storage were payable for the full permitted period, not just active handling days.

Supervision charges for non-duty-paid sugar stored in an outside godown under excise control were payable for the full period of permitted storage, not only for the days of actual receipt or clearance. Rule 47(5) of the Central Excise Rules, 1944 and Rule 4(4) of the Central Excise Rules, 2002 allowed outside storage in exceptional cases subject to conditions imposed by the Commissioner. On the terms of the trade notice and permission on a cost-recovery basis, the charges were linked to the period during which the godown remained under physical control of the excise authorities. No part-refund was therefore due for the storage period in question.

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Issues: Whether supervision charges for storing non-duty-paid sugar in an outside godown were payable for the entire period during which the godown remained under excise control, or only for the days on which actual storage or clearance operations took place.

Analysis: Rule 47(5) of the Central Excise Rules, 1944 and Rule 4(4) of the Central Excise Rules, 2002 permitted storage of excisable goods outside the factory premises in exceptional circumstances and under conditions imposed by the Commissioner. The trade notice and permission granted on cost recovery basis showed that the supervision charges were linked to the period for which the outside godown remained under the physical control of the excise authorities, not merely to the sporadic days when goods were received or cleared. Once the godown was kept under such control for the permitted storage period, the liability to pay supervision charges continued for that duration.

Conclusion: The petitioner was not entitled to refund of any part of the supervision charges, as the charges were payable for the entire period of permitted outside storage.

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