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TMI Blog2013 (1) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... for every person who is liable to pay duty........ and has collected any amount from the buyer of any goods in any manner representing as duty of excise, shall forthwith pay the amount so collected to the credit to the Central Government has application only when equivalent duty had not been deposited at the time of removal of the goods. The scheme of the law is that manufacturers shall not collect amounts falsely representing them as central excise duty and retain them, thus, unjustly, benefiting themselves. In the present cases irrespective of whether the 8% payments were duty or not) since the 8% amount remain already paid to the revenue, and no amount is retained by the assessee, Section 11D has no application. The real identity of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e value of exempted goods, but collected the same from their customers and he is not supposed to do so, and as regards the second issue, it has been admitted and hence confirmed the differential duty under the charge of under valuation. 3. Aggrieved by such an order appellant preferred an appeal before the first appellate authority and before the first appellate authority, the appellant did not press the point of under valuation and hence this issue attained finality. As regards the charge of liability to pay an amount of 8% of the value of the exempted goods cleared and collected by them from the customers, the first appellate authority also concurred with the views of the adjudicating authority and in the impugned order has held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the appellant had collected this amount from their customers. It is seen from the record that both the lower authorities have invoked Section 11D of the Central Excise Act, 1944 for recovery of such an amount from the appellant. 8. We find strong force in the contention raised by the learned counsel that the decision of the Larger Bench in the case of Unison Metals Limited (supra) will apply in this case. With respect, we reproduce the ratio of the said decision, as under:- 8. In the present case, it is not in dispute that the assessees had paid 8% of the value of the goods in terms of Rule 57CC at the time of removal of the goods from the factory. The amounts so paid are the amounts recovered by them from their buyers. Thus, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rusal of the invoices placed on record clearly shows that they have debited their RG 23A account while paying 8% under Rule 57CC and some invoices show debit entry in their PLA. This makes it clear that the appellants have not retained the amount collected from the customers and that they have passed on the amount to the Government as provided under Section 11D of the Central Excise Act. Hence the charge of contravention of the provisions of Section 11D is not sustainable. Accordingly, we set aside the impugned order and allow the appeal. We find that the above view taken by the Tribunal is in conformity with the judgment of the apex Court in the case of Mafatlal Industries, that repeat payment of excise duty is not contemplated. We read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igation to pay the full duty according to law. This is the general purport and meaning of Section 11D. These may be case where goods are removed/cleared without effecting their sale. In such a case Section 11D is not attracted. It is attracted only when goods are sold. The purport of this section is in accord with Section 11B and cannot be faulted. 9. The scheme of Central Excise duty payment is that a manufacturer removed goods from the factory of production after payment of duty. While selling the goods, the manufacturer recovered the duty so paid. In doing so, an assessee is recouping the tax already paid. The arrangement is not that the assessee first collected the tax from the buyer of the goods and then remits the amount to the gove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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