KIRLOSKAR OIL ENGINES LTD. Vs. CCE, PUNE-IV

JUDGEMENT

(1.) THE appellants had stored duty paid goods received from outside in their licensed premises. Show cause notice was issued alleging contravention of Rule 51A of the Central Excise Rules and levy of penalty under Rule 210 of the said Rules. Before the Assistant Collector the Tribunal decision in the case of Autolec Industries was cited. It was also claimed that the MODVAT rules also accepted and acknowledged the entry of duty paid goods. He however imposed penalty of Rs. 1000/ -. The Commissioner (Appeals) distinguishes the citation made before him. He held that permission to bring such duty paid components into the factory would endanger the Revenue. On his upholding the lower order this appeal has been filed.

(2.) RULE 51A does not permit entry or retention in the licensed premises of duty paid goods except where the rules otherwise permit and also except when permitted by the Board and/or by the Commissioner. The entry of duty paid inputs under MODVAT scheme is specifically provided for in the rules. From time to time the coverage of this rule has been explained by the Tribunal and also by the Board. In the cited judgment, the entry of goods other than those manufactured by an assessee was permitted. In the judgment in the case of Toyo ( : 1993 (68) ELT 866), the Tribunal was not dealing with the issue, directly, but held that manufactured goods and traded goods could be kept inside the factory, provided that proper accounting was made