9911796707
TMI Blog1987 (11) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... present case relates to the liability of the appellants to pay duty on that quantity. The case for the appellants before the lower authorities was that the said stock is practically in the nature of dead stock since the said quantity was at the bottom of the silo and could not be removed since the delivery point is at a height of about 3 metres above the bottom of the silo. They further contended that in any event the liability for payment of duty on that quantity should be on the manufacturers thereof (M/s. ACC Ltd.) only and the same could not be recovered from the appellants. It may also be noted at this stage that duty payable by M/s. ACC Ltd. would be at Rs. 135/-per MT. While the duty payable by the appellants on the cement manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Mfg. Co. Ltd. (1977 ELT-J-34) 2. Electric Lamp (India) Pvt. Ltd. (1978 ELT-J-84) 3. Bata India Ltd. (1978 ELT-J-211) 4. Champalal & Co. (1978 ELT-J-492) 5. Sulekh Ram & Sons (1978 ELT-J-525) 6. Mysore Vinyl Industries (1984 Vol. 15 ELT 322) It has been laid down in the above decisions by several High Courts that the liability for payment of excise duty would always be on the manufacturer only and not on the purchaser of the manufactured articles. It has also been pointed out in some of these decisions that the duty liability could always be enforced by proceeding against the manufactured product. In the present instance the Department has not chosen to proceed against the goods but only against the appellants. We may note that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. If, subsequently, contrary to the terms of the agreement, the appellants do not discharge that liability and M/s. ACC Ltd. are compelled to discharge that liability it may be open to M/s. ACC Ltd. to seek recovery of the said amount through the civil court from the appellants in pursuance of the sale agreement between them. This would not mean that the Department would be equally entitled to step into the shoes of M/s. ACC Ltd. and seek recovery of that amount by taking proceedings under the Central Excises and Salt Act. On the question whether it may perhaps be open to the Department to seek recovery of this amount directly from the appellants by instituting a civil suit, we offer no opinion. At all events we are clear that the Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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