TaxTMI 
TaxTMI 
2010 (5) TMI 637
X X X X Extracts X X X X
X X X X Extracts X X X X
....ht to be initiated vide Show Cause Notice dated 4-3-2003 bearing No. C. No. Vin/48/160/2002 EOU-III against the respondents herein were sought to be dropped. The respondents are holders of Customs Licence bearing No. 18/97 engaged in the manufacture and export of the finished products namely, polished granite slabs of various sizes. The respondents had cleared 1335.454 Sq. Ft. of polished granite slabs for IUT to M/s. SVG Exports Pvt. Ltd. vide their Invoice No. 122/2002-03 dated 5-9-2002 and shipping bill No. 3925/2002 dated 5-9-2002, valued at Rs. 2,29,528/-. 3. A Show Cause Notice dated 4-3-2003 came to be issued to the respondents on the allegation of contravention of the provisions of Notification No. 53/97 dated 5-6-97 read wi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 6. On the other hand, learned Advocate appearing for the respondents relying upon the Mahazar report and drawing our attention to the order passed by the Tribunal in the matter of Madhav Marbels and Granites Ltd. v. Commissioner of C. Ex., Salem reported in 2009 (239) E.L.T. 120 (Tri. - Chennai) and in the respondent's own matter reported in 2001 (136) E.L.T. 998 (Commr. Appl.) submitted that considering the Mahazar report, it clearly disclose that the goods had arrived in the consignee's warehouse and were found totally damaged and therefore, taking into consideration of Rule 20(4) of the Central Excise Rules, 2002 read with Regulation 4 of the Warehoused Goods (Removal) Regulations 1963, the respondent cannot be saddled with duty....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f production to a warehouse, or from one warehouse to another warehouse without payment of duty. Sub-rule (2) provides that such facility shall be available subject to such conditions, including penalty and interest, limitations, including limitation with respect to the period for which the goods may remain in the warehouse, and safeguards and procedure, including in the matters relating to dispatch, movement, receipt, accountal and disposal of such goods as may be specified by the Board. Sub-rule (3) provides that the responsibility for payment of duty on the goods that are removed from the factory of production to a warehouse or from one warehouse to another warehouse shall be upon the consignee. Sub-rule (4) states that if the goods disp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e, are not actually received in such another warehouse where the goods have to be re-warehoused then the consignor has to pay the duty in respect of such goods. In order to ensure the payment of such duty, the officer can insist for bond to be executed by the consignor before the goods are cleared for re-warehousing from the warehouse of the consignor. 12. In the case in hand, there is no dispute that the goods were to be re- warehoused in the warehouse of the consignee on clearing the goods from the warehouse of the consignor on execution of bond by the consignor. It is also a matter of record that the goods though were cleared from the warehouse of the consignor i.e. respondent for re-warehousing in the warehouse of the consignee,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing so, mere claim of damage to the goods on the Mahazar report cannot avail nor can be of any benefit to the consignor, more particularly in view of the provisions of law comprised under Rule 20 (4) of the Central Excise Rules, 2002 read with Regulation 4 of the Warehoused Goods (Removal) Regulations, 1963. 13. Neither the Deputy Commissioner nor the Commissioner (Appeals) appears to have considered these relevant aspects of the matter. 14. It was sought to be contended that on behalf of the respondents, the Regulation 4 of the Warehoused Goods (Removal) Regulations, 1963 merely requires arrival of the goods at a place of destination and considering the same and taking note of the facts disclosed from the Mahazar report, it....