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TMI Blog1998 (12) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... ny set up a plant as per agreement with M/s. Hindustan Zinc Ltd. (HZL) for mixing/preparation of such ingredients as needed to be done and for making arrangements for loading/transportation of the mixed/prepared and unmixed/unprepared ingredients; that they were specifically told that M/s. HZL had been exempted from payment of Central Excise duty under Notification No. 191/87 and M/s. HZL had sent them a copy of L-6 licence for obtaining the explosive for industrial purposes without payment of duty. He further, submitted that in their classification list filed by them, they had clearly mentioned that HZL is exempted from Excise duty as per Notification No. 191/87; that the present proceedings had arisen out of a misconception that the benef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 (48) ECR 489 (Tribunal) in which the Tribunal held that "The moment the goods are cleared from the factory under a valid L-6 licence, the responsibility for accountal gets shifted to the consignee ......... after the goods have been despatched the consignor, the manufacturer in this case, has no control over the goods, therefore, and there is no provision in law holding him responsible for ensuring that the goods ultimately reach the consignee's end." The learned Consultant also relied upon the following decisions in support of his contention that the duty liability is on beneficiary consignee and not on manufacturer from whom goods were obtained by the users :- (i) CCE v. Fenner India Ltd. - 1992 (62) E.L.T. 807 (Tribunal) (ii)&em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh the submissions of both the sides. Notification No. 191/87-C.E., dated 4-8-1987 exempted goods falling within Chapters 28, 29, 36 and 38 of the Schedule to the Central Excise Tariff Act, if used in the manufacture of zinc/lead concentrates subject to following the procedure set out in Chapter X of the Central Excise Rules. Chapter X provides a procedure if a person wishes to obtain remission of duty on inputs used in a specified industrial process. According to the procedure contained in Rule 192 of the Central Excise Rules, such a person has to make an application in the proper form stating the estimated annual quantity of the excisable goods required and the purpose for and the manner in which it is intended to use them and declaring t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llants have rightly contended that they did not have any reason nor locus standi to doubt and question the correctness of L-6 licence and CT-2 certificates. The Rules provide the authority to the Excise officers to demand not only the duty but also to confiscate the goods if excisable goods obtained under Rule 192 are not used for the purpose and in the manner stated in the application. Rule 196 even vests the power with the proper officer to withdraw the concession if a breach of rules is committed by the L-6 holder. Accordingly the demand of duty cannot be raised against the appellants who had done nothing but acted on the basis of L-6 licence and CT-2 certificate. The similar views were held by the Tribunal in all cases relied upon by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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