9911796707
TMI Blog1996 (3) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... trial and medical gases. One of the factories of the petitioner-company is located in Jamshedpur. After production, the Company stores the liquefied gases in vacuum insulated storage tanks. The liquefied gases are stored in such tanks at a temperature of approximately 185o Centigrade. Such liquefied gases are despatched to its customers in cryogenic tanker lorries. Before 1986, the liquefied gases were supplied to the customers of the petitioner-company who used to fill up their storage tanks when the tanks became completely dry. Having regard to the capacity of the tanks of their customers, the petitioner-company could supply to them the exact quantity of liquefied gases which their storage tanks could contain. The petitioner-company, however, received complaints from its customers that very often their production activities came to a grinding halt for want of supply of liquefied oxygen/nitrogen, because they had to wait for their tanks to go completely dry and could not fill up their tanks at an earlier stage. With a view to solve the problems faced by their customers, the petitioner-company evolved a revised system of partial supply at regular intervals on weighment basis keepin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Rules 4, 49 as well as Rule 173G of the Rules pre-suppose payment of duty for each consignment by debit to account-current. The Board, therefore, decided that clearance of liquefied gases in tanker-lorries should not be allowed without payment of duty. Such permission granted, if any, should be immediately withdrawn. The suppliers of such gases may be directed to effect clearance against orders for buyers indicating the specified quantities required by them so that gate-passes can be issued and duties paid in each case before removal of gases. 6.Dr. Pal appearing on behalf of the petitioners urged that in exceptional circumstances, proviso (iv) to sub-rule (1) of Rule 173G expowers the Collector to make an order in writing requiring an assessee or class of assessees to determine the duty and debit the account-current in such manner as may be specified by him in such order. The Additional Collector has exercised the power vested in him under the Rules. The order of the Additional Collector in term makes reference to the aforesaid Rules as well as Rule 52A. In the exceptional circumstances, the exercise of power was justified. Such an order passed by the Additional Collector coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the duties payable on the excisable goods. The assessee is obliged to periodically make credit in such account-current by cash payment into the Treasury so as to keep the balance in such account-current sufficient to cover the duty due on the goods intended to be removed at any time; and every such assessee is obliged to pay the duty determined by him for each consignment by debit to such account-current before removal of the goods. It is no doubt true that proviso (iv) to sub-rule (1) of Rule 173G, the Collector is authorised to require an assessee to determine the duty and debit the account-current in such manner as may be specified by him in such order. The power exercised under the aforesaid proviso is administrative in nature and can be recalled at any time. The order of the Additional Collector (Annexure 5) on which reliance has been placed by the petitioner-company, in effect, authorised the petitioner-company to remove gases without payment of excise duty. It was only after the tanker returned to the factory of the petitioner-company that it was ascertained as to the quantity supplied to various customers and duty payable thereon. Under Rule 233, the Board has been veste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and place of clearance from the factory. In my view, he was justified in doing so. It is well known that several amendments to the Rules were effected by the Central Government with a view to implement the Modvat scheme. It has been submitted on behalf of the respondents that under Rule 57G of the Rules, the buyers of the petitioner-company would be denied Modvat credit unless duty-paying documents issued under Rule 52A were made available to them. It is, therefore, submitted that with the amendment of Rule 52A there has been a significant change in the law and any administrative order passed by any authority under the Rules which became inconsistent with the amended Rules became inoperative. I am of the view that the submission has merit and must be accepted. 13.Counsel for the petitioners submitted that Rule 52A will become bad because that rule may compel manufacturers like the petitioners to pay duty twice. This submission is misconceived, and it is on account of the delivery system followed by the petitioner-company that such a situation has arisen. If the petitioner-company follows the delivery system as it existed before 1986, it may have not difficulty in complying with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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