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TMI Blog1995 (3) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... or steel products falling under Tariff Item 26AA(ia) which exempts from payment of duty provided the final products are manufactured out of other iron or steel products falling under sub-item (ia) of 26AA on which the appropriate duty of excise has already been paid. Ld. Assistant Collector has held that in order to claim the benefit of the exemption under this notification, the assessee should produce the duty paying documents in respect of raw-material used for the manufacture of finished products. He has noted that the assessee were obtaining the raw-materials from the following sources : 1.Ministeel plants 2.Main steel plants 3.Imports 4.Re-rollable purchased D-3 filed with Challan but no duty paying documents 5.Re-rollable c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as reported in 1978 (2) E.L.T. (J 525) in respect of the same notification. However, the ld. Asstt. Collector as well as Collector did not agree with the ratio of the said judgment and rejected their claim. However, the ld. Collector has held a portion of demand to be time barred in respect of the clearances made for the period from 8-4-1981 to 8-8-1981. 2. We have heard Shri R. Nambirajan, ld. Consultant for the appellant and Shri A.K. Singhal, ld. JDR for the department. Ld. Advocate submitted that this issue is no longer as this issue has now fully settled in terms of the following judgments : (i) Sulekh Ram Sons v. Union of India - 1978 (2) E.L.T. (J 525); (ii) Ganga Steel Rerolling Mills, Raipur Others v. Union of India Ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on that in view of the facts and the circumstances of the case, the Tribunal was right in the view it took. In this connection, it is instructive to refer to Rule 49 of the Central Excise Rules, 1944, which deals with duty chargeable only on the removal of the goods from the factory premises or from an approved place of storage. Reference was also made before the Tribunal and our attention was also drawn to the decision of the Delhi High Court in Sulekh Ram Sons v. Union of India Ors. [1978 (2) E.L.T. (J 525)], where under Rule 9 of the Central Excise Rules, it was held by the Delhi High Court that under excise system, no goods can be removed from the place of manufacture without first paying the excise duty, therefore, a purchaser can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been paid . The raw materials used by the petitioners for re-rolling were not manufactured by them. The obligation to pay the appropriate amount of excise duty on the raw-materials rested on the manufacturers of those raw-materials. If the manufacturers had not paid the appropriate amount of duty the excise authorities should have recovered the duty from them. A purchaser has no control over the manufacturer in respect of his act relating to the payment of duty on the goods manufactured. Having regard to the scheme of the rules relating to payment of excise duty it is clear that the words has been paid as they are used in the notification do not mean actual payment of duty [1978 (2) E.L.T. (J 525) (Del.)]." The Tribunal in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excise duty leviable thereon has been paid. In other words, a manufacturer has to pay duty before clearing the goods from the factory. In the instant case, no evidence was produced by the Respondent in support of the contention that the goods which were purchased from the market did not suffer duty at the time when such goods were removed by the manufacturer from the concerned factory. On the other hand, they have admitted in their counter-affidavit that the petitioner paid duty on the teleprinter paper rolls/ tapes under Item 17(1) of the Central Excise Tariff and the said base paper was purchased by the petitioner from the market. Therefore, it is absolutely impossible for a purchaser to know whether excise duty on the manufactured goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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