2000 (11) TMI 486

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....ant found yarn kept outside the bonded store room. Shri R.K. Agarwal, Sales Manager of the appellant's firm submitted that the appellants are clearing yarn not only in single yarn form but also in double yarn form. He further deposed that the yarn found in a place outside the BSR was meant for doubling. He also stated that they had not sufficient space to store the yarn and because of the paucity of the space, they are supposed to stock the yarn, outside the bonded store room. He submitted that the yarn is being recorded in the R.G. 1 Register only at the time of this clearance. Shri Agarwal in his statement further stated that the yarn kept outside the BSR was not in ready marketable stage in-as-much as some of it was still in plastic cone....

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.... Chandigarh in which it was clarified that yarn is to be entered in the R.G.1. account as soon as it has attained the form in which it is to be cleared from the factory. He submits that when this clarification is read in conjuction with the statement of the Sales Officer of the Company and the submissions in reply to the SCN it will be clear that yarn in dispute was to be doubled before clearance and since the yarn found was in single form it did not require to be entered in R.G.1. Register in terms of this clarification given in the Trade Notice. Ld. Counsel, therefore, submitted that there was no case either for confiscation of the yarn or for imposition of penalty and therefore, prayed that the appeal may be allowed. 4. Shri S.C.....