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TMI Blog1987 (7) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... he zinc sheet, and the slab before it, is one continuous endless process and the zinc calots are only intermediates in the manufacture of the dry battery can which will house the dry cell electric batteries. There was no removal of the zinc calots within the meaning of Rule 9 and Rule 49 of the Central Excise Rules on accordance with which alone Central Excise duty is to be collected and recovered. No excise duty can be recovered on such zinc calots so used internally in their own factory in the manufacture of dry cell battery. 2. The learned Counsel pointed out that under Rule 9 of the Central Excise Rules, there must be a removal from the place where they are produced, cured, or manufactured or any premises appurtenant thereto, "specified by the Collector in this behalf, whether for consumption, export or manufacture of any other commodity in or outside such place." No such specification has been given by the Collector in this behalf, for the purpose of charging duty on the zinc calots and, therefore, Rule 9 is not satisfied and duty does not become leviable. It can become leviable only when the requisite specification has been made. Rule 49 also acknowledges the specificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the proper officer of Central Excise is a manufacturer of excisable goods. All such licences are required to be issued in regard to clearly designated premises and no licences can be given without such designation. Therefore, when M/s. Geep Industrial Syndicate carved out for themselves a role as producers of zinc calots under the terms and conditions issued by the proper Central Excise authorities, they did so under such conditions that bind their actions and their conduct in respect of such excisable goods. Since they themselves say that they paid duty under protest, they will have received such licence with its permission and with its investitures to conduct their business in accordance with it, and the rules behind it. It does not make a reasonable complaint for M/s. Geep Industrial Syndicate to claim now that there was no place designated thereto; but if such is the case, they are in even more grievous fault. 4. When the licence was issued to M/s. Geep Industrial Syndicate, a place would have been specified by themselves, and approved by the Collector, "where they are produced, *********, manufactured". That is the place from which the goods, calots, produced, manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable, because a place has not been designated or specified by the Collector under Rule 9. The excisable goods carries with it the burden of the duty until it is lawfully discharged. Section 3 of the Central Excises and Salt Act places this burden on all excisable goods and this is never discharged and cannot be discharged in any way that can satisfy my mind except by the payment of the duty. The learned Counsel for M/s. Geep Industrial Syndicate said that even this levy and collection of duty must be made in such a manner as may be prescribed; and the prescription, according to the learned Counsel, is in Rule 9 and Rule 49 of the Central Excise Rules. I do not agree this is the way to read it. Rule 9 and Rule 49 do not contain the manner prescribed for the levy and collection of duties of excise on excisable goods, but only the point of collection of duty: this Rule 9 prohibits the removal of excisable goods from a place where, they are produced etc. etc. until the duty leviable thereon has been paid at such place and in such manner as is prescribed in these rules. It is not the manner of collection that Rule 9 provides but the moment of collection of the duty. However, such c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t he cannot conduct his business as if, simply because zinc calots are not removed and are going to be intermediate goods in the manufacture of battery cells, Section 3 will ignore the zinc calots and will not set its burden on them. Death is no respecter of persons nor is Section 3 a respecter of excisable goods. It lays its icy hand on all excisable goods, and they must answer when it comes calling, for it will come. It is impossible to see how the burden gets discharged or the liability liquidated, simply because the goods are not removed or simply because the goods are intermediates. M/s. Geep Industrial Syndicate have not given a full and faithful answer. I hold that the moment of the zinc calots are taken for further use, to be placed in the die punch to make the cans, they have been removed and have become liable to duty at the stage immediately before it. 11. There are no such goods as intermediate goods in Central Excise law. There are only excisable goods and if goods which were not excisable become excisable, they fall into the Central Excise trap and there is no loosening them until they pay. The learned Counsel also said that the goods are not sold and, therefore, sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e received no duty exemption, and so they were liable to pay duty. 13. But what if M/s. Geep Industrial Syndicate did not take out a licence? There would then be no place of manufacture specified or approved, and, as M/s. Geep's learned Counsel would have it, no exigibility arises on the calots. First of all, M/s. Geep Industrial Syndicate knew the calots were listed as excisable goods by law. This failure to have the goods excised by presenting themselves before Central Excise authorities as manufacturers of calots lays them open to a charge of fraud on the revenue. They needed to report their production of an excisable commodity and to pay the duty they knew had been laid upon it. They did nothing, and now they present themselves as an aggrieved person who had been wronged. They proceeded to reason that as no place is specified, no removal took place, and no duty is attracted. 14. Now this is a very dangerous philosophy. Every manufacturer who manufactures goods clandestinely will demand immunity for the same circumstances - absence of a licence and absence of a specified place. M/s. Geep's learned Counsel countered this by proposing that in such cases, a corrective awaits the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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