TaxTMI 
TaxTMI 
2015 (6) TMI 112
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....the factory premises without payment of duty. The Commissioner after considering various submissions rejected the request of the appellant. It appears that appellant made similar request for their Ahmadnagar units. Aggrieved by the said order, the appellant is before us. 2. Ld. Counsel for the appellant submits that they have shortage of space in the factory and operations have expanded and certain parts of the factory required re-construction, in view of this position, they are finding it difficult to store the finished products which are around 700 in numbers. Ld. Counsel further submitted that over a period of time customers want the goods just in time with the result that appellant have to keep high inventory and therefore require mo....
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....bmits that Rule 4(4) cannot be used to create the depot out side the factory and store the goods in such depot without payment of duty. 4. We have considered the rival submissions. 5. We find that Rule 4(4) of the Central Excise Rules, 2002 reads as under: Duty payable on removal. RULE - (4) Notwithstanding anything contained in sub-rule (1), Principal Commissioner or Commissioner, as the case may be may, in exceptional circumstances having regard to the nature of the goods and shortage of storage space at the premises of the manufacturer where the goods are made, permit a manufacturer to store his goods in any other place outside such premises, without payment of duty subject to such conditions as he may specify. It would be se....
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....the C. Excise Rules, 2002, it is essential that there exist exceptional circumstances that have arisen against which the specific request of storing of non-duty paid goods outside the factory premises, is made. 7. Rule 4(4) of Central Excise Rules, 2002 (CER) covers situations where shortage of space is caused under exceptional circumstances which are unforeseen. This implies that the circumstances are of temporary nature and these circumstances compel a manufacturer to store, non-duty paid goods outside the factory premises. However, the circumstances under which you are seeking permission are normal business circumstances and difficulties faced can be overcome by storing goods in the proposed storage premises after paying duty in accor....
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.... shifted to the area which is presently used for storing finished goods. Effectively, the restructuring will not in any way affect the area where the finished goods are stored. (2) The assessee can create additional space by re-organizing the racks on which the finished goods are stored presently for storing the goods, in case of exigency and to meet the requirements that arose due to the estimated growth. (3) Further, the company also have a piece of vacant land admeasuring 672 sq. meters (24 m x 28 m) (As shown on page 3 exhibit D of their letter dated 11.08.2014) nearby the existing finished goods area (BSR) which can be constructed and can be utilized for storage of finished goods. In view of above factual report, your request ....
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....undoubtedly would imply temporary and brief period. It is also to be noted that even now appellant can store the goods in the proposed place but after payment of duty on provisional or final assessment basis. Appellant has quoted this Tribunal's judgment in the case of Anutone Acoustics Ltd (supra). We have gone through the said judgment, where the matter was remanded by this Tribunal in view of the facts and circumstances of the case for reconsideration. Facts and circumstances of the present case as elaborated in the Commissioner's order are very different. We are therefore of the view that since decision does not help the appellant. 7. We also note that Rule 20 of Central Excise Rules, 2002 provides warehousing provisions. Und....