TMI Blog1982 (8) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Government of India under Section 6 of the Central Excises and Salt Act, 1944. Copper and copper alloy circles are excisable goods on which excise is payable under Section 3 of the aforesaid Act at the rates mentioned in Item No. 26-A of the First Schedule of the Act. Excisable goods which are covered by Item No. 26-A of the First Schedule are governed by Chapter VII-A of the Central Excise Rules 1944. This Chapter deals with removal of excisable goods on determination of duty by producers, manufacturers or private warehouse licensees. 3. Rule 173-G lays down the procedure which is to be followed by every assessee. Sub-rule (4) of Rule 173-G, with which we are concerned in the present case, reads us under :- "(4) (a) Every assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 sheets weighing 136.900 Kgs. cumulatively weighing 935.700 Kgs. were not entered in the raw material account of the party. 177 circles were in semi-processed state which was completed before the Seizing Officer and 30 sheets had already been rolled. Hence the above billets circles and sheets were seized as there was no entry in the accounts for contravention of Rules 9, 173-G(4) read with 173-Q of the Central Excise Rules, 1944." 5. In response to the show cause notice, M/s. Behari Lal Omar Rolling Mills filed explanation before the Assistant Collector, Central Excise. On 24th June, 1971, the Assistant Collector, Central Excise held that the petitioner had since not entered the raw materials account of billets received by him before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purpose of maintaining account of raw materials is obviously for checking of evasion of excise duty. A manufacturer is required under this rule to enter into a complete and full account of raw materials received by him before starting the manufacture. In the instant case, at 11 A.M. when the petitioner factory was visited, the manufacture had already started. The Central Excise Officer found 30 completely rolled sheets and 177 circles under process of being rolled. The raw materials out of which these two items were produced had admittedly not been entered in the Stock Register. In the statement made before the Superintendent Preventive, Behari Lal, giving the reasons for not having entered the raw materials in the accounts, stated that b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 8. Counsel for the petitioner next urged that since the Collector had not issued instructions under Rule 173-G(4) laying down the manner in which the accounts had to be maintained, the petitioner's not entering the raw materials before putting them in the furnace, could not be a ground for holding him responsible for breach of the aforesaid provision. If the Rule 173-G(4) is read, there is no doubt left that entry of raw materials is required to be made before start of manufacture. The object of entering the raw materials is to check the evasion of excise duty. This could be achieved only when the raw materials is mentioned in the Stock Register before manufacture was started. That being the position, the petitioner had committed the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturing purpose when the petitioner's factory was visited by the Preventive Staff. The argument made by the petitioner's learned Counsel was that as 189 billets had not been used into the process of rolling, the petitioner had not violated Rule 173-G(4). The order of the Excise authorities in respect of 189 billets was illegal. It may be a fact that 189 billets had not actually been consumed but that by itself is not sufficient for holding that the orders of the Excise authorities were illegal. These billets had also been put in alongwith other raw materials which had been consumed for the manufacture of circles and sheets. Only on account of arrival of the Preventive Staff that the petitioner could not successfully do so. According to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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