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TMI Blog1978 (2) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... ingots for fabrication under challans. They wrote a letter to the Superintendent of Central Excise, Durgapur on 8-4-1974 seeking clarification whether the steel ingots produced by them and sent to various parties for re-rolling would attract any excise duty as they contended that the products received back from the re-rollers were utilised for finished products manufactured by them and duty was paid at the time of despatch of the finished products under relevant tariff. They felt that Rule 56B would apply in their case. It was emphasised that the clearances of steel ingots effected by them should be considered as clearances without payment of duty and under no circumstances as unauthorised and illegal removal as held by the Board. Since the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the intention as set out under the provisions of Rule 9A of the Central Excise Rules, 1944 has been to treat clearances from a factory or a warehouse on a different basis from the clearances of unmanufactured products from the owner's premises. In the former case, except in certain situations, for example, where the goods have been cleared in bond for export on goods have been lost in transit from factory to warehouse, the intention is to apply the rate of duty as in force on the date of clearance. It is not the intention to invoke Rule 9A(5) when the date of removal of the goods from the factory is known to the Department. Reference to clauses (i) & (ii) of sub-rule (1) of Rule 9A make the above position clear. Sub-rule (1) of the Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase in relation to Chapter VII-B concerning simplified procedure. Even section 37(4) of the Central Excises and Salt Act, 1944, refers to "removes" and not "clears". It, therefore, follows that the words "cleared" or "clearances" the central excise context only mean removal of the goods whether on payment of duty or without payment of duty from a factory or a warehouse. Subject to certain exceptions as stated in rule 9A, the rate of duty where goods are removed from the factory or a warehouse will be the rate of duty in force on the date of actual removal of the goods whether such removal is on payment of duty or without payment of duty. 6. In view of above, factual and legal position, Government held that the rates of duty applicable in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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