TMI Blog1988 (6) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... G. Sankaran, Sr. Vice-President]. - The issue arising for determination in this appeal lies in a narrow compass. It is whether the department is justified in demanding duty of Rs. 3143.36 on a quantity of 4.465 Metric Tonnes of fatty acids manufactured by the respondents and removed within the factory for production of other goods. The said quantity was not in fact used for the aforesaid produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... removed free of duty for the intended use. It is against this order that the Collector of Central Excise, Guntur, is in appeal before us. 3. We have heared Ms. Renuka Monn, SDR, for the appellant-Collector. The respondents did not appear for the hearing but had submitted a written representation. 4. For the purpose of disposal of the present appeal, it does not seem to us to be necessary to la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid to have occurred did not actually occur or that the quantity of goods on which duty was demanded had been diverted for other purposes. We will, therefore, have to proceed on the basis that the said quantity was in fact destroyed in the fire accident. If this be so, and considering that the goods at the time they were removed from the place of production to the hydrogeneration plant were intend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounted goods was demanded in terms of Central Excise Rules, 1944. The Tribunal held that mere intention to use the goods for the specified purpose could not be a basis for the duty concession and that the goods must be really used as intended. It held that actual use must follow intention if the concession is to be earned, unless the intention is frustrated by the intervention of events such as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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