TMI Blog1972 (2) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... ector, Central Excise, dated May 31, 1962, as illegal and inoperative and restraining the Union of India from recovering the fine and duty imposed and for direction for return of the confiscated goods, the Union of India has filed this appeal. 2. There is no dispute that under the transfer permit, Ex. 38, whose copy and counterfoil are at Ex. Nos. 44 and 60, the plaintiff got the goods in quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... avention of Rule 40 of the Excise Rules, which runs as under :- "Except as provided in the proviso to sub-Rule (1) of Rule 32 and in Rule 171, no wholesale purchaser of unmanufactured tobacco for the purpose of trade or manufacture and no wholesale purchaser of other unmanufactured products from a curer shall receive into any part of his premises or into his custody or possession, any unmanufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the plaintiff, there was no contravention of Rule 40. Therefore, the latter part of Rule 40 that every such wholesale purchaser who receives or has in his custody or possession any such goods, in contravention of the Rule, shall suffer the penalty and be liable for confiscation, cannot apply. 4. Mr. Nanavati, however, vehemently argued that, there being the short duty paid, whoever has such g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , as found by the Department in its order. We need not go into this aspect, because the material question, which is to be decided, is whether Rule 40 was attracted, so far as the plaintiff was concerned. The plaintiff got the goods under a valid permit. If the authority wrongly certified payment of duty, the authority, for their fault, cannot hold the plaintiff liable, if, according to the Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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