TMI Blog1988 (2) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... n terms of Rule 66 of Central Excise Rules, 1944. 2. The respondents manufacture matches in the mechanised sector. The Central Excise duty on matches is paid by purchasing excise stamps of appropriate value which are affixed to the match boxes. On 29.9.1982 a show cause notice was issued to the respondents as to why duty at the tariff rate should not be demanded from them under Rule 66 of the Central Excise Rules, 1944 on the quantity of excise stamps found missing/unaccounted. On considering their reply, the Assistant Collector issued an order dated 22.2.1983 that the rate of duty applicable in cases where Central Excise stamps are missing, or are not satisfactorily accounted for is the highest rate applicable to that category (colour) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order is bad in law, urges the learned Departmental Representative, and needs to be set aside. 4. Shri Achuthan, the learned counsel appearing for the respondents, would urge that though they admit their liability to pay the price of the lost excise stamps, the rate applicable is only Rs. 6.60 as it was at that rate they had purchased the stamps. According to the learned counsel the interpretation of full price occurring in Rule 66 of Central Excise Rules given by the Collector (Appeals) in the impugned order is correct in law and needs no modification. 5. We have carefully considered the submissions made by the learned D.R. and the learned counsel. It is seen that as per Rule 64 of Central Excise Rules the duty on matches is to be pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise stamps are lost/unaccounted, we are inclined to agree with the view that the full price which has to be paid back on demand by the proper officer under Rule 66 should be the effective rate applicable to that variety (colour) of stamps only. In other words full price should refer to the maximum duty which would be payable in the case of a manufacturer, who is authorised to use the Central Excise stamp of a particular colour. In coming to this view we also bear in mind that lost/unaccounted match excise stamps have potential for diversion and misuse. The above view is also in accord with the fact that under the match excise system, obtaining Central Excise stamps on credit is a special facility, and manufacturers availing of i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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