TaxTMI 
TaxTMI 
1997 (7) TMI 339
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....eputy Collector on steel ingots on the ground of non accountal by them of the same in their RG 1 Register. 2.  Appellants are suppliers of LPG gas cylinders manufactured by them to the big oil companies after getting specific orders from them. They have stated that LPG cylinders being highly delicate and sensitive items, even the requisite valves needed to be fitted in the cylinders were supplied by the oil companies themselves. Besides, the procedure for manufacture is also subject to rigorous conditions. First of all, the requisite raw material of specific type of steel sheets is obtained from steel manufacturing companies in accordance with specifications given by the oil companies. The material released to the appellants is veri....
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....sidered as completely manufactured and hence they could not be accounted for the RG 1 Register. Regarding excess of 28.685 MT of MS ingots, the General Manager stated that production from 1-1-1992 to 14-1-1992 could not be accounted for in RG 1 Register since the dealing assistant maintaining the records was not well and could not attend the office regularly. The explanation given by the General Manager was not accepted and 806 LPG cylinders and 28.685 MT of MS ingots were seized under Section 110 of the Customs Act as made applicable to like matters under the Central Excise Act on the reasonable belief that the same were not recorded in RG 1 Register with intent to evade duty and thus liable to confiscation. In the Order-in-Original dated ....
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....es themselves. The manufacturing process was not complete with the fittings of the valves on the cylinders. Further, pneumatic tests were required to be carried out for checking leaks before they could be despatched to the oil companies. She referred to the Trade Notice dated 10-2-1988 issued by the Hyderabad Collectorate which had clarified that LPG cylinders need not be accounted for in RG 1 Register immediately after manufacture. They should be accounted for in RG 1 Register only after BIS tests are completed on all the cylinders which are found fit for sale. Ld. Counsel contended that the cylinders ordered to be confiscated had not reached the stage of completion of BIS tests. Non-accountal of the cylinders in RG 1 Register could not th....
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....tions and tests. These have not been disputed. On the question of non-accountal of LPG cylinders in RG 1 Register, the Collector (Appeals) had remanded the case to the Deputy Commissioner for ascertaining whether an BIS tests was required before they could be entered in the RG 1 Register. I find from Trade Notice dated 10-2-1988 issued by the Hyderabad Collectorate that it has been very specifically provided that LPG cylinders are not to be accounted for in RG 1 Register immediately after manufacture and should be accounted for in RG 1 Register only after BIS tests are completed on all cylinders and found that they are fit for sale. I, therefore find merit in the appellants' contention that the LPG cylinders found on stock verification as n....