TaxTMI 
TaxTMI 
TaxTMI 
2015 (11) TMI 41
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.... for further processing under Rule 16C of the Central Excise Rules, 2002 for financial year 2015-16. 2. The brief facts of the case are that M/s.Essar Steel India Ltd., the appellant is engaged in the manufacture of Hot rolled pickled and oiled coil/sheets, cold rolled coil/sheets, G.P Coil/sheets and CR CA/GP Color coated coil/sheets falling under Chapter heading No.72 of the First Schedule to the Central Excise Tariff Act, 1985. It has set up a 10 Million ton per annum facility at Hazira, Surat. It has set up a plant at Pune for undertaking downstream manufacturing process converting hot rolled coils into hot rolled pickled and oiled coil, cold rolled coils/sheets, galvanized coils/sheets and color coated coils/sheets, etc. It is further....
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.... as Rule 12AA of the Rules. Aggrieved by the impugned order, the appellant has filed this appeal before us. 4. The learned Counsel for the appellant submitted that Rule 16C provides that the jurisdictional Commissioner of the Central Excise may permit the manufacturer to remove the goods from the factory of manufacturer to any other premises without payment of excise duty for carrying out processes not amounting to manufacture. After the processing, the goods needs to be sent back to the factory for further clearance on payment of excise duty or cleared from the processing unit on payment of excise duty. The relevant Rule 16C is extracted below: "Rule 16C " Special procedure for removal of excisable goods for carrying out certain process....
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....e issued a show-cause notice to the appellant but the fact is that no show-cause notice was ever issued against the appellant in relation to any violation of Rule 16C or Rule 12AA of the Rules. 5.2 The learned Counsel further submitted that Rule 16C is a beneficial piece of legislation which permits a manufacturer to remove excisable goods manufactured in his factory without payment of duty for carrying out test or any other process not amounting to manufacture. The said discretion must be exercised by the department to benefit the assessee and facilitate trade and manufacturer of goods. In support of his contention he placed reliance on the following decision, wherein it was held that the administrative discretion must be used judiciously....
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....riod of three months beyond 31/03/2015 for which the appellant could continue to operate under Rule 16C subject to the conditions and procedures prescribed vide letter dated 14/09/2011 of Deputy Commissioner, Central Excise, Pune with an added stipulation that compliance to conditions and prescribed procedure would be checked in for the month of April, May and June 2015 by surprise visit by the Range Superintendent by making a visit to the factory at Pune once in every month. The Bench directed the AR to find out whether any violation was committed by the appellant during these three months period. The learned AR after getting feed back from the Pune Commissionerate submitted that during the grace period the department did not find any viol....