1978 (4) TMI 105 - HC - Central Excise

Summary

Issues:
Levy of excise duty on non-rewarehoused tobacco, applicability of Central Excise Rules, liability of consignor for duty payment, non-compliance with transport permit regulations.

Analysis:
The plaintiff, a tobacco producer, sold tobacco to a buyer without rewarehousing a major portion, leading to the demand for excise duty payment. The plaintiff argued the levy was illegal, but the Court examined the Central Excise Rules. Rule 9 prohibits removal of excisable goods without duty payment unless stored in approved places. Rule 19 states the curer is liable for duty until transfer to a licensed person. Rule 29 holds the purchaser and possessor liable if goods are sold without duty payment. Rules 152 to 156-B outline procedures for goods removal and rewarehousing. The consignor must execute a bond and produce a rewarehousing certificate to be discharged from duty liability. The consignor's duty continues until rewarehousing, even after goods delivery. In this case, the plaintiff failed to produce the rewarehousing certificate or rewarehouse the goods, justifying the duty levy under Rule 156-A and 153. The Court found no error in the duty levy and dismissed the plaintiff's suit.

In conclusion, the Court upheld the levy of excise duty on the plaintiff due to non-rewarehousing of tobacco as per Central Excise Rules. The consignor's liability for duty extends until rewarehousing, even after goods delivery to the consignee. The plaintiff's failure to comply with transport permit regulations and produce the rewarehousing certificate justified the duty demand. The Court found no grounds to overturn the duty levy and dismissed the plaintiff's appeal, with no order as to costs.