1994 (12) TMI 175

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....e Central Excise Preventive Officers of Meerut Collectorate visited the premises of the appellants and found two Note books containing private accounts of removal of cement. On scrutiny of these Note books, the department came to the conclusion that 2,400 bags of cement each weighing 50 kgs. had been removed without payment of duty and without accountal in the statutory records. The officers also noticed that the appellants had received 10,000 HDPE bags from M/s. Mahalaxmi Polypack (P) Ltd., Muzafarnagar vide Bill No. 1066/87, dated 27-7-1987 while the statutory RG 9 register did not contain any entry of receipt. From the above, it was inferred that the appellants had manufactured and clandestinely removed 10,000 bags of cement without paym....

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.... of cement), no breach of Rule 51-A arises, as the Rule does not stipulate that duty paid goods should be cleared on the same day as payment of duty and only prescribes that no duty paid goods shall be retained in any part or premises of the factory. 7. Regarding the charge of receipt of 21,340 bags out of which only 11,340 have been accounted for, the records clearly show that 10,000 HDPE bags covered by Invoice No. 1066, dated 22-7-1986 were received by the appellants through Delivery Challan No. 1065, dated 16-7-1986. The Invoice (Page 26 of the paper book) itself bears an endorsement "Material received in store on 16-7-1986 quantity 9987 vide GR No. 392". 8. In these circumstances, the finding of the adjudicating authority that th....

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....etc. The object of restriction contained in Rule 51A of the Central Excise Rules, 1944 is mainly to guard against the removal of non duty-paid goods in the guise of duty-paid goods, therefore this Rule has to be enforced strictly. As per the prescribed procedure, when the goods are retained even after the payment of duty, D-3 intimation about the retention of duty-paid goods is to be given to the proper officer and such goods are to be stored separately. The finding of the CEGAT in the present case that Rule 51A of the Central Excise Rules, 1944 does not stipulate that the duty-paid goods should be cleared on the same day on which duty is paid seems to be in direct conflict with the statutory provisions of the said Rule 51A as well as....